Moody's shifts Shenzhen Expressway view to negative

Moody's Investors Service said it changed Shenzhen Expressway Co. Ltd.'s (SZEC) outlook to negative from stable. At the same time, the agency affirmed the company's Baa2 issuer rating and senior unsecured rating.

"The negative outlook reflects our concerns that SZEC's proposed acquisition of Shenzhen Investment International Capital Holdings Infrastructure Co. Ltd. (Siich, not rated) will significantly increase the former's leverage and weaken its stand-alone credit profile," said Ivy Poon, a Moody's vice president and senior analyst, in a press release.

Poon said she expects SZEC to fund a substantial part of the acquisition with debt.

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