Moody's may downgrade China Jinjiang Environment

Moody's Investors Service said it placed on review for downgrade China Jinjiang Environment Holding Co. Ltd.'s Ba2 corporate family rating and Ba3 senior unsecured rating on its dollar bond.

The review reflects the company's weakened credit profile due to heightened liquidity risk and challenges related to the previous outage of certain existing capacity, Moody's said.

The agency said it expects the relatively weaker credit profile of China Jinjiang Environment's ultimate parent, Hangzhou Jinjiang Group, to weigh on its ratings.

The outlook was already negative since April because of the outage of some of the company's existing capacity as part of an upgrade program related to waste-to-energy projects, Moody's explained.

While the company has been making progress to complete the upgrade program, the cash flow impact of the outage, combined with the company's challenging liquidity position and the ultimate parent's weaker credit profile, means that the company's overall credit profile may no longer be consistent with a Ba2 corporate family rating, the agency said.

The review also will consider the continued pressure on the company's credit profile from the lingering credit weakness of its ultimate parent, Hangzhou Jinjiang Group, Moody's said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.