Moody’s lowers Guangzhou R&F

Moody's Investors Service said it downgraded Guangzhou R&F Properties Co., Ltd.'s corporate family rating to Ba3 from Ba2.

At the same time, the agency lowered R&F Properties (HK) Co. Ltd.’s (R&F HK) corporate family rating to B1 from Ba3.

Additionally, Moody's cut the senior unsecured ratings assigned to the notes issued by Caifu Holdings Ltd. and Trillion Chance Ltd. to B1 from Ba3.

The bonds are unconditionally and irrevocably guaranteed by R&F HK and supported by Guangzhou R&F through keepwell deeds and deeds of equity interest purchase undertaking.

R&F HK is a wholly owned subsidiary of Guangzhou R&F, and both Caifu and Trillion Chance are wholly owned by R&F HK.

All outlooks are stable.

"The downgrade of Guangzhou R&F reflects our expectation that the company's debt leverage will remain elevated over the next 1-2 years, therefore also limiting the company's funding flexibility," Moody's vice president and senior analyst Kaven Tsang said in a news release.

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