Moody's cuts Greenland Holding

Moody's Investors Service said it lowered Greenland Holding Group Co. Ltd.’s corporate family rating to B2 from Ba3. The agency also cut the backed senior unsecured rating of Greenland Global Investment Ltd.'s medium-term note program to (P)B3 from (P)B1, its senior unsecured notes to B3 from B1, the CFR of Greenland Hong Kong Holdings Ltd. to B2 from B1, the backed senior unsecured rating of Greenland Hong Kong’s MTN program to (P)B3 from (P)B2 and the backed senior unsecured rating of Greenland Hong Kong’s dollar-denominated notes to B3 from B2.

Greenland Global's MTN program and senior unsecured notes are guaranteed by Greenland Holding. Greenland Hong Kong's MTN program and the related notes are supported by a deed of equity interest purchase undertaking and a keepwell deed between Greenland Holding, Greenland Hong Kong and the bond trustee.

Concurrently, Moody's placed all ratings on review for further downgrade. The previous outlooks were negative.

"The downgrade reflects our expectation that Greenland Holding's refinancing risk will increase over the next six to 12 months, driven by its declining contracted sales and operating cash flow, as well as sizable bond maturities," said Daniel Zhou, a Moody's analyst, in a press release.

"The review for downgrade reflects the uncertainties over the company's ability to raise new funding, through new borrowing or asset disposals, to address its refinancing needs over the next six to 12 months," Zhou added.

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