Moody's lowers Xinhu Zhongbao

Moody's Investors Service said it downgraded to B3 from B2 the corporate family rating of Xinhu Zhongbao Co., Ltd., and to Caa1 from B3 the backed senior unsecured rating of the notes issued by Xinhu (BVI) 2018 Holding Co. Ltd. and guaranteed by Xinhu Zhongbao. The outlooks remain negative.

"The downgrade reflects our concerns that weakening economic conditions will elevate Xinhu Zhongbao's refinancing risk, given its large maturing debt over the next 12-18 months," said Celine Yang, a Moody's assistant vice president and analyst, in a press release.

The company has already repaid its $700m offshore bond due in March. But it still has a total of RMB 1.8 billion of onshore bonds becoming puttable in September, and a total of $658 million of offshore bonds becoming puttable and callable before the end of June 2021.

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