Moody's downgrades GCL New Energy

Moody's Investors Service said it downgraded GCL New Energy Holdings Ltd.'s corporate family rating to B1 from Ba3 and the senior unsecured rating on its dollar-denominated bond to B2 from B1.

The outlook is stable.

The downgrades conclude a review for downgrade that Moody's initiated in September.

The downgrades reflect the deterioration in GCL New Energy's credit quality, driven by the weakening credit profile of its parent, GCL-Poly Energy Holdings Ltd., the agency said.

The heightened business and financial pressure arising from the challenging upstream industry environment has limited the ability of GCL-Poly to provide support for its subsidiary, GCL New Energy, Moody's said.

In particular, the government policy to curb capacity expansion in solar power will temper sentiment in the upstream market in the near term, the agency said.

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