Moody’s assigns Kaisa notes B2

Moody’s Investors Service said it assigned a B2 senior unsecured rating to the proposed dollar-denominated notes to be issued by Kaisa Group Holdings Ltd.

The notes are rated one notch lower than the company’s B1 corporate family rating due to structural subordination risk. The risk reflects that the majority of Yango’s claims are at its operating subsidiaries and have priority over claims at the holding company in a bankruptcy scenario, Moody’s said.

Kaisa plans to use the proceeds to refinance medium to long-term offshore debt due within one year.

“The proposed bond issuance will improve Kaisa’s liquidity position and lengthen its debt maturity profile without a material impact on its credit metrics, given that the company will use the proceeds to refinance existing debt,” said Danny Chan, a Moody’s assistant vice president and analyst, in a press release.

© 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.