Moody's may lower G Steel

Moody's Investors Service said it placed the B1 corporate family rating and senior unsecured bond rating of G Steel Public Co. Ltd. on review for possible downgrade.

The agency said that this rating action follows G Steel's announcement it will purchase $180 million in convertible bonds issued by Nakornthai Strip Mill plc, adding that the bond purchase will allow G-Steel - upon conversion - to acquire around 19% of NSM's shares within six months.

"Moody's is concerned that this majority debt-funded transaction could weaken G Steel's credit profile and raise refinancing risk, given an appropriate long-term funding arrangement has yet to be put in place," said lead analyst Angela Choi,

"NSM is also restructuring its debt and may issue further calls for capital support from its shareholders, including G Steel."

© 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.