Moody's: No change for China Orienwise

Moody's Investors Service said the Ca corporate family and senior unsecured debt ratings of China Orienwise Ltd. are unaffected by news that it has entered into a non-legally binding memorandum of understanding in relation to a possible debt-for-equity exchange by its noteholders into preference shares of the company.

But the agency said the ratings remain on review for possible downgrade.

Since the MOU is not legally binding and a definitive agreement has not been reached, there remains uncertainty over the successful execution of such an exchange and therefore settlement of the bond outstanding, the agency said.

The rating continues to reflect the potential for above-average loss severity in the event of default, Moody's said.

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