Moody's downgrades Seazen

Moody's Investors Service said it downgraded Seazen Group Ltd.'s corporate family rating to Ba2 from Ba1, its senior unsecured rating to Ba3 from Ba2, and the backed senior unsecured rating on the bonds issued by New Metro Global Ltd. and guaranteed by Seazen Group to Ba3 from Ba2.

The agency also trimmed Seazen Holdings Co., Ltd.'s CFR to Ba2 from Ba1 and the backed senior unsecured rating on the bonds issued by New Metro Global and guaranteed by Seazen Holdings to Ba2 from Ba1.

Moody's concurrently placed all the ratings on review for further downgrade. The outlooks were changed to ratings under review from negative.

"The rating downgrades reflect Seazen's (1) weakening sales and financial metrics, (2) lower liquidity buffer and constrained funding access, and (3) reduced financial flexibility because of its increasing use of internal resources and secured financing to repay maturing debt," said Kelly Chen, a Moody's vice president and senior analyst, in a press release.

"The review for downgrade reflects the uncertainty over the company's ability to raise new financings, especially unsecured financing, to restore is liquidity buffer and financial flexibility," added Chen.

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