Moody's eyes Weifang Urban for downgrade

Moody's Investors Service said it placed the Baa3 issuer rating of Weifang Urban Construction and Development Investment Group Co., Ltd. and the Baa3 senior unsecured rating on Weifang’s U.S. dollar bonds on review for downgrade.

Concurrently, Moody's said it changed the outlook to ratings under review from stable.

"The review for downgrade reflects our concern that the Weifang government's capacity to support (GCS) its local government financing vehicles (LGFVs) is under pressure due to rising liquidity risks associated with its contingent liabilities," said Stephen Tang, a Moody's assistant vice president and analyst, in a press release.

"The review for downgrade reflects Weifang Urban Construction's increasing exposure to contingent risks as the company provides more guarantees and lending to other state-owned enterprises (SOEs) in Weifang amid tight funding conditions in the region," added Tang, who is also Moody's lead analyst for Weifang Urban Construction.

© 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.