Moody's eyes China South City for cut

Moody's Investors Service said it placed China South City Holdings Ltd.'s B2 corporate family rating on review for downgrade. The previous outlook on the company was stable.

"The review for downgrade reflects CSC's weak liquidity and sizable debt maturing or becoming puttable over the coming 12-18 months," said Danny Chan, a Moody's assistant vice president and analyst, in a press release.

The agency said it expects CSC's cash holdings and operating cash flow will not cover maturing debt over the next 12-18 months. Moody's noted CSC has made some progress in addressing its upcoming debt maturities by rolling over its onshore debt, but warned CSC may have to sell some assets, or other actions, to cover maturing short-term debt.

© 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.