Moody's could cut Winsway

Moody's Investors Service said it placed the Ba3 corporate family and B1 senior unsecured ratings of Winsway Coking Coal Holdings Ltd. on review for possible downgrade.

Moody's said this follows external allegations regarding Winsway's overstatement of its inventory, and the existence of undisclosed related party transactions.

As a result, the company's equity and bond prices have been negatively affected.

"While Winsway has been proactively addressing most of the allegations, Moody's is concerned that the company's business plan and operations, as well as its access to the financing market, will be negatively affected in the interim," Moody's vice president and senior analyst Ken Chan said in a press release.

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