Moody’s shifts CAR view to negative

Moody’s Investors Service said it shifted the outlook for CAR Inc. to negative from under review and confirmed the company’s Caa1 corporate family and senior unsecured ratings.

CAR reported the sale and purchase agreements signed in July between Jiangxi Province Jinggangshan Beiqi Investment Management Co., Ltd. and CAR’s shareholders, UCAR Inc. and Amber Gem Holdings Ltd., have been terminated and may not proceed, respectively.

“The rating confirmation reflects the fact that CAR’s high refinancing risk, which is exacerbated by its substantial shareholder UCAR’s negative impact on its funding access, remains because the transactions did not proceed,” said Gerwin Ho, a Moody’s vice president and senior credit officer, in a press release.

The negative outlook reflects that the weak operating environment and challenges at UCAR could weaken CAR’s funding access and financial profile, Moody’s said.

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