Moody's lowers Languang Development

Moody's Investors Service said it downgraded Sichuan Languang Development Co., Ltd.’s corporate family rating to Caa3 from B3. The agency also lowered to Ca from Caa1 the backed senior unsecured rating on the notes issued by Hejun Shunze Investment Co., Ltd., that Languang Development guarantees.

"The downgrade reflects Languang Development's heightened liquidity and default risks given its sizable amount of maturing debt over the next three to six months," said Celine Yang, a Moody's vice president and senior analyst, in a press release.

"The downgrade also reflects the weak recovery prospects of Languang Development's creditors, if there is a default," added Yang.

The outlook remains negative.

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