Moody's downgrades China Everbright

Moody's Investors Service said it downgraded China Everbright Ltd.'s long-term foreign- and local-currency issuer ratings to Baa3 from Baa2. The agency changed the outlook to stable from under review.

The rating action concludes the review for downgrade started on April 21, Moody’s said.

“The downgrade reflects a lowering of CEL's stand-alone assessment to Ba3 from Ba2. This is driven by CEL's elevated leverage which continues to be high despite recent debt reduction. Additionally, the fluid financial market conditions and slowdown in economic growth following the coronavirus outbreak will continue to pose uncertainties to CEL's profitability and deleveraging timeline,” Moody’s said in a press release.

The outlook reflects the view leverage won’t materially go up and the company will maintain its assets under management resilience and good profitability, the agency said.

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