Moody’s rates Ruyi CFR B2, notes B3

Moody's Investors Service said it assigned a B2 corporate family rating to Shandong Ruyi Technology Group Co., Ltd.

At the same time, the agency assigned a provisional B3 rating to the proposed senior notes to be issued by Prime Bloom Holdings Ltd. – a wholly owned subsidiary of Ruyi – and supported by unconditional and irrevocable guarantees from Ruyi and its wholly owned subsidiary, Forever Winner International Development Ltd. (unrated).

The outlook is stable.

Proceeds will be used for general corporate purposes at Ruyi, including refinancing offshore projects and existing offshore debt.

"Ruyi's B2 rating reflects its established track record in operating an integrated textile manufacturing business with a global sales network and its ability to enhance profitability through downstream expansion into the manufacture and retail of apparel," Moody's vice president and senior analyst Chenyi Lu said in a news release.

"On the other hand, Ruyi's rating is constrained by its high level appetite for acquisitions and non-textile business investments; high financial risk due to debt-funded growth; and weak liquidity position."

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