Moody's lowers GCL New Energy

Moody's Investors Service said it downgraded GCL New Energy Holdings Ltd.'s corporate family rating to B2 from B1 and its senior unsecured rating to B3 from B2.

Moody's also said it changed the outlook to negative from stable.

The downgrades reflect the combined effect GCL New Energy's tightened liquidity and a high level refinancing risk with sizable maturing debt in 2019, the agency said.

The downgrades also consider continued uncertainty regarding the ongoing business model of the company under the asset light strategy, Moody's said.

The agency said it acknowledged that GCL New Energy is pursuing several alternatives to address its large refinancing task.

But, there is uncertainty that these alternatives will materialize in a timely manner amid tight credit conditions, Moody's said.

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