Moody’s reviews Bocom for downgrade

Moody's Investors Service said it placed Bocom International Holdings Co. Ltd.'s A3 long-term issuer rating under review for downgrade. The outlook was negative before ratings under review.

On March 10, Bocom reported a profit warning that it sees posting a net loss of about HK$2.9 billion to HK$3 billion for the year ended Dec. 31.

“Following a net loss of HK$1.7 billion in the first half of 2022, this indicates a further net loss of HK$1.2 billion-HK$1.3 billion in the second half of 2022, which is equivalent to approximately one-third of the company's equity attributable to shareholders as of the end of June 2022,” the agency said in a press release.

Moody’s said its review will consider Bocom International’s plans and actions to improve its capital position and risk management, including any concrete plans to strengthen its capital and lower its investment risk, which would help lessen the company's earnings volatility and ensure a good level of solvency.

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