Moody’s changes Fantasia Holdings view

Moody's Investors Service said it changed to negative from stable the outlook on Fantasia Holdings Group Co., Ltd.'s B2 corporate family rating and B3 senior unsecured ratings.

At the same time, Moody's affirmed all ratings.

"The negative outlook reflects our expectation that Fantasia's refinancing risk will remain high, due to its high level of short-term debt and the current tight credit conditions for property developers in China," Celine Yang, Moody's assistant vice president and analyst, said in a news release.

"The negative outlook also reflects Fantasia's weakened credit metrics, as it adjusted its business focus to grow its property development business – instead of pursuing, as it had done in previous years, high growth in its asset-light businesses – amid tight regulatory measures to contain property price growth."

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