Moody's downgrades Zensun

Moody's Investors Service said it downgraded Zensun Group Ltd.’s corporate family rating to B3 from B2 and the senior unsecured rating on the bonds issued by Zensun Enterprises Ltd. and guaranteed by Zensun to Caa1 from B3.

"The downgrade reflects our expectation that Zensun's liquidity will weaken over the next six to 12 months, driven by its declining contracted sales and cash flow, as well as sizable refinancing needs," said Daniel Zhou, a Moody's analyst, in a press release.

The agency said it forecasts Zensun's contracted sales will retreat around 25%-30% over the next six to 12 months, citing arduous operating and funding conditions in China's property sector.

The outlook remains negative.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.