Moody's downgrades Yincheng

Moody's Investors Service said it downgraded Yincheng International Holding Co., Ltd.'s corporate family rating to B3 from B2.

“"The downgrade reflects our expectation that Yincheng's key credit metrics will be weaker than that of its B2-rated Chinese property peers over the next 12-18 months, driven by its elevated debt leverage and weak profitability," said Daniel Zhou, a Moody's analyst, in a press release.

Yincheng will have $475 million of offshore bonds maturing from Sept. 1 to Dec. 31, 2022. While the company sold $110 million of 364-day bonds to refinance its $200 million of bonds due next month, the dependence on short-term financing will expose the company's liquidity profile to market risks, the agency noted.

The outlook remains negative.

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