Moody's lowers Lanzhou Construction

Moody's Investors Service said it lowered to Caa1 from B3 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 downgrade reflects Lanzhou Construction's severe liquidity and refinancing risks, given the company's limited fundraising progress to address its large upcoming debt maturities over the next six months, including $300 million of offshore bonds due in November 2022," said Ying Wang, a Moody's vice president and senior analyst, in a press release.

Moody’s noted Lanzhou’s access to the capital markets has been tight since November and talks with lenders on refinancing have taken more time than expected. It sees the company relying on the Lanzhou city government and Gansu provincial government to repay its public bonds and there is some risk whether the governments can cover the refinancing needs.

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.