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Moody’s revises Yida China to negative
Moody's Investors Service said it changed the outlook on Yida China Holdings Ltd.’s B2 corporate family rating and B3 senior unsecured rating to negative from stable and affirmed both ratings.
The action follows Yida's Nov. 14 announcement that it entered into agreements to acquire for RMB 4.46 billion a 70% ownership in the Dalian Tiandi project. Yida already has a 30% interest in the project and will settle the acquisition costs by instalments over the next 12 months.
"The negative outlook reflects our consideration that Yida's acquisition of Dalian Tiandi, which is sizeable, will weaken its liquidity position and increase its debt leverage over the next 12-18 months," Moody's vice president and senior credit officer Kaven Tsang said in a news release.
"Yida will likely take time to rectify the situation through increasing sales of development properties and securing borrowed funds."
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