Moody’s views Road King negatively

Moody’s Investors Service said it revised its outlook for Road King Infrastructure Ltd. and its financing vehicles to negative from stable, but affirmed their Ba3 ratings.

The financing vehicles are RKI Overseas Finance 2017 (A) Ltd., RKP Overseas Finance 2016 (A) Ltd., RKPF Overseas 2019 (A) Ltd., RKPF Overseas 2019 (E) Ltd., and RKPF Overseas 2020 (A) Ltd.

"The negative outlook reflects Road King's weaker-than-expected contracted sales amid difficult operating conditions, as well as reduced ability to raise sizable unsecured long-term funding, which lowers its financial flexibility," said Cedric Lai, a Moody's vice president and senior analyst, in a press release.

The agency said it projects Road King’s contracted sales will drop to RMB 34 billion and RMB 30 billion in 2022 and 2023 from RMB 49 billion in 2021.

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