Moody's downgrades Yuzhou

Moody's Investors Service said it downgraded Yuzhou Group Holdings Co. Ltd.’s corporate family rating to B2 from B1. The agency also lowered the company's senior unsecured rating on the bonds to B3 from B2.

"The downgrade reflects Yuzhou's weakened funding access and our expectation that its financial metrics over the next six to 12 months are more appropriate for a B2 CFR under the challenging and funding conditions," said Celine Yang, a Moody's vice president and senior analyst, in a press release.

The agency said the B2 rating reflects Yuzhou’s weak credit metrics and high reliance on sales from joint ventures and associates, which constrain its corporate transparency.

The outlook remains negative.

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