Moody's lowers Languang

Moody's Investors Service said it lowered Sichuan Languang Development Co., Ltd.'s corporate family rating to B2 from B1. Concurrently, the agency downgraded to B3 from B2 the backed senior unsecured rating on the notes issued by Hejun Shunze Investment Co., Ltd. and guaranteed by Languang Development.

"The downgrade reflects Languang Development's reduced liquidity buffer given its large upcoming debt maturities in the coming 12-18 months amid the tight credit environment in China and volatile capital markets," said Celine Yang, a Moody's vice president and senior analyst, in a press release.

In the next 12-18 months, the company will have more than RMB 14 billion of onshore and offshore bonds and RMB 15 billion more of non-standard borrowings becoming due or puttable.

The outlook remains stable.

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