Moody’s revises Dongfeng view to stable

Moody’s Investors Service said it revised the outlook to stable from under review and confirmed the A2 issuer rating of Dongfeng Motor Group Co. Ltd.

Concurrently, the agency confirmed the A2 rating on the senior unsecured bonds issued by Dongfeng Motor (Hong Kong) International Co., Ltd., an indirect wholly-owned subsidiary of Dongfeng. The parent guarantees the bonds.

“The ratings confirmation reflects Dongfeng’s high importance to China’s automotive industry as the key subsidiary of the second-largest automaker in terms of unit sales, and the fact that the Chinese government is its key shareholder with a 66.9% stake through its parent,” said Gerwin Ho, a Moody’s vice president and senior credit officer, in a press release.

The stable outlook considers the importance of the company to the Chinese government, and that government support will stay intact as well, keeping credit metrics in line with the company’s stand-alone credit profile, Moody’s said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.