Moody's downgrades Aiful

Moody's Investors Service said it downgraded to B3 from Ba2 the long-term senior unsecured debt rating and unsecured medium-term note rating of Aiful Corp. and kept the rating under review for possible further downgrade. Aiful's issuer rating also was downgraded to Caa1 from Ba2. It remains on review for possible further downgrade.

This action is in response to the news that Aiful is preparing to apply for commencement of consensual business revitalization alternative dispute resolution procedures as prescribed in the Act on Special Measures for Industrial Revitalization with some creditors, Moody's said.

The downgrade also reflects the severe pressure on Aiful's liquidity, the agency said, and difficulty the company will face in maintaining its franchise over the short term.

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