Moody’s: Hydoo unaffected by tap bond

Moody's Investors Service said that Hydoo International Holding Ltd.'s B2 corporate family rating and B3 senior unsecured rating are unaffected by news of the company's tap bond offering on its existing $100 million senior notes due Dec. 15, 2018.

The outlook remains negative.

The tap issuance will support Hydoo's liquidity profile and will not otherwise materially affect its credit metrics, Moody’s said, as it will use the proceeds mainly to refinance its existing convertible notes.

The ratings reflect the company’s track record of developing trade centers in low-tier Chinese cities and its high profit margins, the agency said.

The ratings are constrained by its weak sales performance as a result of the continued softening in demand for trade centers in low-tier cities and its slow progress in converting sales agreements into actual contracted sales, given China's slowing economic growth, Moody’s said.

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