Moody’s eyes Zijin Mining for cut

Moody’s Investors Service said it placed on review for downgrade Zijin Mining Group Co. Ltd.’s Baa3 issuer rating and the Baa3 senior unsecured rating on the bonds issued by Zijin International Capital Co. Ltd. and guaranteed by Zijin.

Moody’s changed to the outlook to ratings under view from stable.

“The review for downgrade reflects Moody’s concerns over Zijin’s acquisitive strategy and the expected weakening in its financial metrics over the next 12-18 months following the company’s announcement on June 8 that it will acquire Tibet Julong Copper Co., Ltd. for RMB 3.9 billion,” said Kaven Tsang, a Moody’s senior vice president and the international lead analyst for Zijin, in a press release.

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