Moody's cuts China Orienwise to Caa1

Moody's Investors Service said it downgraded China Orienwise Ltd.'s corporate family and senior unsecured debt ratings to Caa1 from B3. The ratings remain on review for possible further downgrade.

The downgrade follows news regarding the resignation of four of its directors nominated by foreign shareholders, Moody's said, and also is the result of several events that have significantly affected the company's operations, including fraudulent activities, slowdown in new business, delay in repayments and employee turnover.

The resignations signify that there is a significant disruption in its operations because of the investigation, the agency said, as confidence from outside parties has faltered. Its business franchise also has been severely damaged in a short period of time, Moody's added.

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