Moody's downgrades Jiangsu Nantong

Moody's Investors Service said it downgraded Jiangsu Nantong Sanjian Construction Group Co., Ltd.'s corporate family rating and Jiangsu Nantong Sanjian International Co., Ltd.'s senior unsecured rating to B3 from B2.

The outlook is negative.

The downgrades reflect concerns over Jiangsu Nantong's weakened liquidity position, Moody's said.

The agency said it believes the company's refinancing risks have increased due to the decline in operating cash flow, tighter credit conditions in China and the consideration that it has RMB 1 billion in onshore bonds puttable in the second quarter of 2019.

Jiangsu Nantong's liquidity is tight, Moody's said.

The downgrades also reflect potentially higher cash extraction risk, potentially weaker disclosure and potentially weaker access to the capital market following its delisting from the National Equities Exchange and Quotations (NEEQ) market, the agency added.

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