Moody's downgrades Radiance

Moody's Ratings said it downgraded Radiance Holdings (Group) Co. Ltd.'s corporate family rating to Ca from Caa1 and the company's senior unsecured rating to C from Caa2.

The outlook remains negative.

On Wednesday, Radiance announced that it had not repaid the $300 million of notes that were due that day.

"The downgrade of Radiance's ratings with a negative outlook reflects the company's weak liquidity and our expectation of weak recovery prospects for the company's creditors," said Kelly Chen, a Moody's vice president and senior analyst, in a press release.

Moody’s warned the non-payment could potentially spark an acceleration of repayments for its other debt obligations. “Moody's expects the recovery prospects for Radiance's creditors, especially for its offshore bondholders, to be low in a bankruptcy scenario, given its high debt leverage and the large amount of liabilities at the operating subsidiary level.”

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