Moody's cuts Yinchuan Tonglian to junk

Moody's Investors Service said it assigned a Ba1 corporate family rating to Yinchuan Tonglian Capital Investment Operation Co., Ltd. and withdrew the company's Baa3 issuer rating.

Moody's also changed the outlook to stable from negative.

"The Ba1 CFR, which is lower than the previous Baa3 issuer rating, reflects Yingchuan Tonglian's weakened funding access, as indicated by the company's large net funding outflow in financing activities and higher funding cost during January to September 2021. We expect the tight funding environment for issuers from fundamentally weak regions to continue," said Roy Zhang, a Moody's vice president and senior analyst, in a press release.

The stable outlook reflects the expectation that Yinchuan government's ability to help the company will remain stable and that Yinchuan Tonglian will have enough liquidity to address its funding needs over the next 12 months with support from the Yinchuan government, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.