Moody's downgrades Yida China

Moody's Investors Service said it downgraded Yida China Holdings Ltd.'s corporate family rating to Caa1 from B3.

The agency also said it downgraded the company's senior unsecured rating of the senior unsecured notes to Caa2 from Caa1.

The outlook remains negative.

The downgrades reflect increased concerns over Yida's already weak liquidity due to uncertainty around the financial condition and debt servicing ability of China Minsheng Investment Corp., Ltd., the ultimate parent of Yida's largest shareholder, Jiayou (International) Investment Ltd., Moody's explained.

Yida already faces high debt refinancing risk over the next 12- to 18-months amid tight credit conditions in China, particularly for small-scale property developers, the agency said.

Any financial stress at China Minsheng Investment could raise further pressure, Moody's said.

The ratings also consider Yida's established track record in the development and management of business parks in Dalian, the agency said.

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