Moody's cuts Golden Wheel

Moody's Investors Service said it downgraded Golden Wheel Tiandi Holdings Co. Ltd.’s corporate family and senior unsecured ratings to Caa1 from B3

"The downgrade reflects Golden Wheel's contracted sales will fall over the next six to 12 months because of weaker consumer sentiment amid tight funding conditions, which in turn will lead to a deterioration in the company's financial metrics and liquidity," said Cedric Lai, a Moody's vice president and senior analyst, in a press release.

The agency said it sees Golden Wheel's adjusted EBIT/interest and revenue/adjusted debt staying anemic at around 0.7x and 30%-35%, respectively, over the next 12-18 months from the weak levels of 0.5x and 36%, respectively, for the 12 months ended June 30.

The outlook remains negative.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.