Moody’s lowers Seazen

Moody’s Investors Service said it lowered Seazen Group Ltd.’s corporate family rating to B2 from B1 and its subsidiary New Metro Global Ltd.’s backed senior unsecured rating on the bonds to B3 from B2. The bonds are guaranteed by Seazen Group or Seazen Holdings Co., Ltd.

"The downgrades reflect Seazen Group's weakening credit metrics, liquidity buffer and financial flexibility over the next 12-18 months as a result of a prolonged decline in its property sales and constrained funding channels," said Kelly Chen, a Moody's vice president and senior analyst, in a press release.

Moody's said it forecasts Seazen Group's gross contracted sales will plunge to around RMB 78 billion in 2023 and around RMB 65 billion -RMB 70 billion in 2024 from RMB 116 billion in 2022. The agency noted China’s persistently weak housing demand in lower-tier cities, where Seazen’s operations are mainly located and the country’s “softening economic prospects.”

The outlook remains negative.

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