Moody’s rates Yango notes B2

Moody’s Investors Service said it assigned a B2 senior unsecured rating to the proposed dollar-denominated notes to be issued by Yango Justice International Ltd., a wholly-owned subsidiary of Yango Group Co., Ltd. and guaranteed by Yango Group.

The B2 rating for the bonds is one notch lower than the company’s B1 due to structural subordination risk. The risk reflects that the majority of Yango’s claims are at its operating subsidiaries and have priority over claims at the holding company in a bankruptcy scenario, Moody’s said.

Yango plans to use the proceeds to refinance offshore indebtedness.

“The proposed bond issuance will lengthen Yango’s debt maturity profile without materially impacting its credit metrics, as the company will use the proceeds to refinance its existing debt,” said Celine Yang, a Moody’s assistant vice president and analyst, in a press release.

The outlook is stable.

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