Moody's lowers Yihua view to negative

Moody's Investors Service said it affirmed the B2 corporate family rating of Yihua Enterprise (Group) Co., Ltd. and affirmed the B3 backed senior unsecured note s issued by Yihua Overseas Investment Ltd., which are guaranteed by Yihua.

Moody's also said it changed the outlook on the ratings to negative from stable.

The negative outlook reflect concerns about the company's higher earnings volatility and refinancing risks in the next 12- to 18-months, the agency said.

More challenging macro and funding conditions in the coming 12- to 18-months will raise the company's earnings volatility and refinancing risks, thereby narrowing its rating headroom, Moody's said.

Yihua group's adjusted debt-to-EBITDA ratio is expected to rise toward 7.5x in the next year or so, from 6.3x in 2017, the agency said.

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