Moody's downgrades China Fishery to Ca

Moody's Investors Service said it downgraded to Ca from Caa2 China Fishery Group Ltd.’s corporate family rating and the rating on the senior unsecured bonds issued by its subsidiary – CFG Investment SAC – and guaranteed by China Fishery.

The outlook remains negative.

“The downgrade reflects the consideration that the recovery prospects for senior unsecured bondholders could fall further after actions taken by a lender for the group,” said Lina Choi, a Moody's vice president and senior credit officer, in a news release.

On Nov. 26, Pacific Andes International Holdings Ltd. (unrated), the parent of China Fishery, suspended trading in its shares and announced that one of the lenders of China Fishery had taken certain actions.

At the same time, Moody's notes from the auditing firm KPMG’s website that Edward Middleton, Fergal Power and Kris Beighton – all KPMG employees – have been appointed by the High Court of Hong Kong as joint and several provisional liquidators of China Fishery.

“While the appointment of the provisional liquidators is intended to preserve the assets of the company, it also indicates that the process of debt restructuring has become more challenging,” Moody’s said in a news release.

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