Moody’s might raise Kaisa Group

Moody's Investors Service said it placed Kaisa Group Holdings Ltd.'s Ca corporate family and senior unsecured debt ratings under review for upgrade.

On Feb. 9, Kaisa announced the resumption of trading in its shares and provided some updates on recent developments, including interest payments under its 2013 senior notes, demand notices for payment against the company and court proceedings.

On Feb. 6, Sunac China Holdings Ltd. (Ba3 stable) and Kaisa jointly announced that Sunac conditionally agreed to acquire 49¼% of Kaisa's outstanding shares from its major shareholder, Kwok Ying Shing, and his family members.

The completion of the share purchase is conditional on a number of factors, including the resolution of Kaisa's debt payments, the waiver by creditors of any actions against breaches of the terms of existing debt due to the share purchase, the resolution of all existing disputes and court applications faced by the company, the resolution of irregularities in Kaisa's business operations, and shareholder approvals for certain actions.

"The review for upgrade reflects our expectation that Sunac's acquisition of Kaisa, if completed, will significantly improve the repayment prospects for Kaisa's creditors, including offshore bondholders," Moody's vice president and senior analyst Franco Leung said in a news release.

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