Moody’s might cut GCL New Energy

Moody's Investors Service said it placed on review for downgrade the Ba3 corporate family rating of GCL New Energy Holdings Ltd. and the B1 senior unsecured rating on its dollar-denominated bond.

“Our review of GCL New Energy's ratings reflects the continued pressure on its credit profile from the lingering credit weakness of its parent, GCL-Poly Energy Holdings Ltd.,” Ivy Poon, Moody's vice president and senior analyst, said in a news release.

“On a standalone basis, GCL New Energy's business transformation strategy of an asset light model through asset disposals would improve its financial leverage, but uncertainty remains in the lengthy negotiation process associated with the disposals, against the backdrop of an evolving policy environment, as well as the structure of disposal transactions.”

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