Moody's downgrades Zhongliang

Moody's Investors Service said it downgraded Zhongliang Holdings Group Co. Ltd.'s corporate family rating to Caa2 from B3.

"The rating downgrade reflects Zhongliang's heightened liquidity risk following its proposed exchange offer and consent solicitation to its noteholders," said Cedric Lai, a Moody's vice president and senior analyst, in a press release.

The offer indicates Zhongliang's liquidity stress amid a challenging operating environment, tight funding condition and the company's offshore bonds maturity of about $900 million before the end of December, the agency said.

The outlook remains negative.

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