Moody’s turns Yunda view to negative

Moody’s Investors Service said it changed its outlook on Yunda Holding Co., Ltd. to negative from stable.

"The negative outlook reflects the company's muted volume growth over the past few quarters due to intense market competition, and the resultant margin weakness and delayed deleveraging. Its weakening volume reduces operating efficiency and its ability to improve profitability amid inflationary and competitive pressures. YUNDA's leverage will stay above 2x over the next 12-18 months, which deviates from our earlier expectations of the company reducing leverage," said Ying Wang, a Moody's vice president and senior analyst, in a press release.

The agency also affirmed Yunda’s Baa2 issuer rating and the senior unsecured rating on the bonds issued by its wholly owned subsidiary Yunda Holding Investment Ltd. which the parent guarantees.

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