Moody's alters Jiangsu Zhongnan view to negative

Moody's Investors Service said it changed the outlooks for Jiangsu Zhongnan Construction Group Co., Ltd. and Haimen Zhongnan Investment Development (International) Co., Ltd. to negative from stable but affirmed Jiangsu Zhongnan's B2 corporate family rating and the B3 senior unsecured rating on the bonds issued by Haimen Zhongnan and guaranteed by Jiangsu Zhongnan.

"The change in outlook to negative reflects Jiangsu Zhongnan's weakening sales and credit, which will weakly position the company at the B2 level," said Daniel Zhou, a Moody's analyst, in a press release.

The agency said it also sees the company's limited access to funding and use of internal cash for debt repayment narrowing its liquidity buffer.

"However, the rating affirmation reflects our expectation that Jiangsu Zhongnan will maintain adequate liquidity to address its refinancing needs over the next six to 12 months," added Zhou.

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