Moody's: No change for SRE

Moody's Investors Service said it sees no immediate impact on SRE Group Ltd.'s B2 corporate family and B3 bond ratings from its proposed acquisition of the remaining 49% interest in Huarui Asset Management from SRE's major shareholder for HK$1.75 billion.

The outlook remains negative.

Although the transaction constitutes a connected party transaction and raises concerns about corporate governance and fund leakage, such risks already have been captured in SRE's current ratings, Moody's said.

The acquisition is being funded mainly by equity issuance so its cash flow metrics and liquidity will not be materially affected, the agency said.

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