Moody’s eyes Beijing Capital for trim

Moody’s Investors Service said it placed Beijing Capital Group Co., Ltd.’s Baa3 ratings and its ba3 baseline credit assessment on review for downgrade.

"The review for downgrade reflects BCG's weak financial metrics, particularly its high debt leverage. In addition, we consider that it's highly uncertain that BCG will be able to restore its metrics to levels supportive of its existing BCA and rating amid a challenging operating environment in the property sector," said Daniel Zhou, a Moody's assistant vice president and analyst, in a press release.

The agency said it forecasts BCG's adjusted net debt/EBITDA will probably remain at an elevated level of 9x-12x over the next 12-18 months, versus 10.9x and 7.9x in 2022 and 2021, respectively.

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