Moody’s raises Renhe CFR, debt to Caa1

Moody's Investors Service said it upgraded Renhe Commercial Holdings Co. Ltd.’s corporate family and senior unsecured ratings to Caa1 from Caa3.

The upgrade follows the Jan. 7 completion of a rights issue and tender offer in exchange for its offshore bonds.

The outlook remains negative.

"The ratings upgrade reflects a reduction in debt and an improvement in Renhe's capital structure following the completion of its rights issue and debt exchange offer," Moody's analyst Fiona Kwok said in a news release.

On Jan. 7, Renhe completed its debt exchange exercise and repaid $221 million of its 2015 notes and $439 million of its 2016 notes at a distressed price of $930 and $820, respectively, per $1,000 principal amount.

The company used the proceeds of $376 in bank borrowings and $423 million from its rights issue to fund the debt exchange offer transaction.

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