Moody’s downgrades Dr. Peng

Moody's Investors Service said it downgraded Dr. Peng Telecom & Media Group Co., Ltd.'s corporate family rating to Ba3 from Ba2.

At the same time, the agency downgraded Dr. Peng Holding Hongkong Ltd.'s senior unsecured rating to Ba3 from Ba2. The notes are unconditionally and irrevocably guaranteed by Dr. Peng Telecom.

The outlook remains negative.

"The downgrade of the ratings for Dr. Peng Telecom and Dr. Peng Holding reflects Moody's assessment that Dr. Peng Telecom will likely pursue a financial policy that becomes more favorable to shareholders," Danny Chan, Moody's Analyst, said in a news release.

"At the same time, the ratings downgrade reflects Moody's expectation that Dr. Peng Telecom's business plan will continue to evolve and lacks clarity on how the company will restore its weakened operating performance."

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