Moody's downgrades Yestar

Moody's Investors Service said it downgraded the corporate family rating and senior unsecured rating of Yestar Healthcare Holdings Co. Ltd. to B3 from B1.

On Monday, Yestar announced it entered into a share transfer agreement to acquire the remaining 30% equity interest in five subsidiaries, collectively known as the Shanghai Anbaida Group Cos. from minority shareholders. The proposed transaction will take place in three phases and be completed by Aug. 31, 2021, for RMB 675 million.

"The downgrade to B3 and negative outlook reflect Yestar's increased liquidity risk, with the RMB 675 million consideration payable in three installments through Aug. 31, 2021, and a $200 million bond due Sept. 15, 2021," said Gerwin Ho, a Moody's vice president and senior credit officer, in a press release.

The outlook remains negative.

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