Moody's downgrades Seazen

Moody's Investors Service said it downgraded to Ba3 from Ba2 Seazen Group Ltd.'s corporate family rating and to B1 from Ba3 the backed senior unsecured rating on the bonds guaranteed by Seazen Group and issued by New Metro Global Ltd.

The agency also lowered to Ba3 from Ba2 the backed senior unsecured rating on the bonds guaranteed by Seazen Holdings Co., Ltd. and issued by New Metro Global.

Moody's changed all the outlooks to negative from ratings under review and withdrew Seazen Holdings' CFR because Seazen Holdings accounts for most of Seazen Group's operations, and its credit quality is already reflected in Seazen Group's Ba3 CFR. The rating and outlook of Seazen Holdings was Ba2 and ratings under review before the withdraw.

These actions conclude the review for downgrade started on May 13, the agency said.

"The rating downgrade reflects Seazen Group's declining property sales and credit metrics, as well as reduced financial flexibility amid the difficult operating and funding conditions in China's property sector," said Kelly Chen, a Moody's vice president and senior analyst, in a press release.

"The negative outlook reflects uncertainties over Seazen Group's ability to raise new unsecured long-term funding to maintain its liquidity buffer," added Chen.

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