Moody's cuts Lanzhou Construction to B1

Moody's Investors Service said it downgraded to B1 from Ba2 the corporate family rating of Lanzhou Construction Investment (Holding) Group Co., Ltd. and the senior unsecured rating on the bonds issued by City Development Co. of Lan Zhou and guaranteed by Lanzhou Construction.

The ratings are under review for further downgrade. The agency also revised the outlook of both companies to rating under review from negative.

"The downgrade reflects Lanzhou Construction's weak debt management and heightened refinancing risks, given the company's tight funding access and substantial amount of debts due in the rest of 2022," said Ying Wang, a Moody's vice president and senior analyst, in a press release.

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