Moody's downgrades Yida China

Moody's Investors Service said it downgraded Yida China Holdings Ltd.'s corporate family rating to Caa2 from Caa1. Moody's also downgraded the senior unsecured rating on the bond issued by Yida to Caa3 from Caa2. The outlook remains negative.

The actions follow the announcement of Yida's debt exchange offer on Thursday. The company proposed to exchange its $300 million offshore bond with 6.95% coupon issued in 2017 and maturing in April 2020, with 8% of the principal in cash, and the remaining 92% to be exchanged with new notes. The new notes, due in 2022, will bear interest at 10% per annum for the first six months and 14% per annum for the remaining term of the new notes.

The agency said the offer can be viewed as a distressed debt exchange.

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