Moody’s revises Yuexiu Transport view to negative

Moody’s Investors Service said it revised its outlook for Yuexiu Transport Infrastructure Ltd. to negative from stable following the announcement the company is buying three expressways for close to RMB 6 billion.

“The change in outlook to negative reflects our expectation that the announced acquisition will raise Yuexiu Transport’s leverage and weakens the headroom within the Baa2 rating,” said Ivy Poon, a Moody’s vice president and senior analyst, in a news release.

Moody’s said the company plans to finance the purchases with 75% debt and 25% cash.

The agency also affirmed the company’s Baa2 issuer rating.

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