Moody's cuts Winsway

Moody's Investors Service said it downgraded Winsway Coking Coal Holdings Ltd.'s corporate family rating to B1 from Ba3 and its senior unsecured bond rating to B2 from B1.

The agency said the rating action follows the announcement by Aluminum Corp. of China Ltd. (Chalco) that it is terminating its acquisition of a 29.9% interest in Winsway.

At the same time, Moody's said it placed the ratings on review for further downgrade.

"The downgrade is driven by Moody's concern that the expected strengthening of Winsway's operational and financial ability will not materialize in the near term with the cancellation of Chalco's offer," said Alan Gao, a Moody's vice president and senior analyst, in a news release.

Moody's said it had expected that if the acquisition materialized, the presence of Chalco as the single largest shareholder would provide benefits to both business volumes and banking support, both of which are important to the recovery of Winsway's financial profile.

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