Moody’s downgrades Maoye, debt

Moody's Investors Service said it downgraded Maoye International Holdings Ltd.'s corporate family rating to Caa1 from B1 and its senior unsecured ratings to Caa2 from B2.

The outlook is negative.

"The downgrade reflects our concern over Maoye's increased probability of default," Moody's vice president and senior credit officer Lina Choi said in a news release.

"We believe the company's debt repayment risk has increased, because of its weakening operating cash flow and the potential cash drainage from further acquisitions."

"The downgrade also reflects heightened financial risk from its high debt leverage," Choi added in the release.

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