Moody’s changes Seazen view to stable

Moody’s Investors Service said it changed the outlooks for Seazen Group Ltd., Seazen Holdings Co., Ltd., and New Metro Global Ltd. to stable from negative.

At the same time, Moody’s affirmed Seazen Group’s Ba2 corporate family rating and Ba3 senior unsecured rating; Seazen Holdings’ Ba2 CFR; and the Ba2 backed senior unsecured rating for the bonds issued by New Metro Global and guaranteed by Seazen Holdings. Seazen Group owns a 67.1% stake in Seazen Holdings.

“The change in outlooks to stable from negative reflects the companies’ improving liquidity and demonstrated ability to regain access to funding, after the arrest of Mr. Wang Zhenhua, the largest shareholder and former chairman of the group,” said Kaven Tsang, a Moody’s senior vice president, in a press release.

“The group’s strengthened liquidity, a result of strong contracted sales and the group’s preemptive measures to preserve liquidity, will provide the companies with good headroom to buffer against the risks that could arise from the criminal allegations against the former chairman,” said Tsang.

Moody’s said the group has improved its funding access over the last two to three months, as seen by its sale of dollar-denominated bonds in December for refinancing, and its ability to secure further new bank loans to support ongoing operations.

While a few major banks have yet to resume lending to the group, Moody’s expects these banks will gradually resume lending this year, if the group can maintain strong contracted sales and good liquidity.

© 2015 Prospect News.
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