Moody’s eyes Great Wall for downgrade

Moody's Investors Service said it placed China Great Wall Asset Management Co., Ltd.’s A3 long-term issuer rating under review for downgrade.

Additionally, the agency placed the (P)Baa1 backed senior unsecured medium-term note program rating and the Baa1 long-term backed senior unsecured debt rating of China Great Wall International Holdings III Ltd. under review for downgrade. The notes issued under the MTN program are guaranteed by China Great Wall AMC International Holdings Co Ltd. and supported by keepwell deeds from Great Wall AMC.

Great Wall AMC did not publish its 2021 annual results by June 30 because the assessment of a particular item wasn’t finalized, which prompted the review, Moody’s said.

“Great Wall AMC's offshore bonds have a covenant that states the company needs to provide its bond trustee an audited financial report within 180 days of the end of financial year. If the company fails to fulfill such obligations and the failure continues for 60 days after the trustee or noteholders has given a written notice to the company, it could trigger an event of default,” the agency said in a press release.

Moody’s said the review will consider that certain item on the company’s financial position and whether it can sustain diversified funding sources and its liquidity.

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