Moody's trims Jiangsu Zhongnan

Moody's Investors Service said it downgraded Jiangsu Zhongnan Construction Group Co., Ltd.’s corporate family rating to B3 from B2 and the senior unsecured rating on the bonds issued by Haimen Zhongnan Investment Development (International) Co., Ltd. and guaranteed by Jiangsu Zhongnan to Caa1 from B3.

"The downgrade reflects our expectation that Jiangsu Zhongnan's liquidity will weaken over the next 6 to 12 months, driven by its declining contracted sales, constrained funding access, and sizable refinancing amount," said Daniel Zhou, a Moody's analyst, in a press release.

The downgrade also indicates expectations that Jiangsu Zhongnan's credit metrics will stay weak over the next 12-18 months, the agency said.

The outlook remains negative for both entities.

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