Moody's cuts Dr. Peng Telecom, on review for downgrade

Moody's said it downgraded Dr. Peng Telecom & Media Group Co., Ltd.'s corporate family rating to B3 from B2.

At the same time, Moody's downgraded Dr. Peng Holding Hongkong Ltd.’s senior unsecured rating to B3 from B2. The notes are unconditionally and irrevocably guaranteed by Dr. Peng Telecom.

The ratings are on review for further downgrade.

“The downgrade reflects Dr. Peng Telecom's elevated refinancing risk, as its weakened operating cash flow and cash holdings will be insufficient to meet its repayment needs through 2Q 2020,” said Danny Chan, a Moody's assistant vice president and analyst, in a news release.

“The downgrade also reflects increasing uncertainty over its ongoing business transformation amid the fast-changing industry landscape,” said Chan, who is also Moody's lead analyst for Dr. Peng Telecom.

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