Moody’s trims Tibet Financial view to negative

Moody’s Investors Service said it changed the outlook for Tibet Financial Leasing Co., Ltd. to negative from stable, mirroring the uncertainties about Tibet Financial Leasing’s strategy and funding costs due to the liquidity problems at its largest shareholder, Tunghsu Group Co., Ltd., and the potential change in its shareholding. Tunghsu owns a 48.5% stake in Tibet Financial.

“Moody’s expects the company’s funding costs and ability to refinance will be sensitive during this period due to the financial difficulties at Tunghsu Group. This risk is somewhat mitigated by the proposed transaction that Shijiazhuang SASAC will become Tunghsu Group’s largest shareholder. However, it will take time to complete this transaction and is subject to regulatory approvals,” said the agency in a press release.

Moody’s affirmed Tibet Financial’s Ba2 ratings.

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