Moody’s revises Kaisa view to negative

Moody's Investors Service said it changed the outlook on Kaisa Group Holdings Ltd.'s Ca corporate family and senior unsecured debt ratings to negative from positive and affirmed the ratings.

On May 28, both Kaisa and Sunac China Holdings Ltd. (B1 stable) announced the termination of Sunac's proposed acquisition of Kaisa, and the close of the offer period for Kaisa. According to the termination agreement, Kaisa will refund half of the HK$2.325 billion pre-payments to Sunac before May 29, and the remainder – with interest – no later than Dec. 28, 2015.

"The termination of the share purchase agreement will weaken repayment prospects for Kaisa's creditors, including its offshore bondholders," Moody's vice president and senior analyst Franco Leung said in a news release.

"Without an immediate sponsor of stronger financial strength, Kaisa will face significant challenges in resolving its financial woes. Furthermore, Kaisa has not yet released its audited financial statements for FY2014, and has thus far provided little information about its progress in restructuring its onshore and offshore debt."

© 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.