Moody’s lowers GCL New Energy

Moody's Investors Service said it downgraded the corporate family rating of GCL New Energy Holdings Ltd. to Ba3 from Ba2 and the senior unsecured rating on its dollar-denominated bond to B1 from Ba3.

The outlook is negative.

The actions conclude the review for downgrade initiated on June 7.

"The downgrade reflects the reduced ability of GCL-Poly Energy Holdings Ltd., the parent company of GCL New Energy, to provide extraordinary support to GCL New Energy in times of need, due to the challenging operating conditions in the solar upstream sector," Ralph Ng, Moody's assistant vice president and analyst, said in a news release.

"The negative outlook reflects our concerns over GCL New Energy's heightened liquidity risk and the ongoing challenging operating environment in solar upstream sector, which continues to constrain the credit profile of GCL Poly and its ability to provide support to GCL New Energy."

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