Moody's downgrades SJM

Moody's Investors Service said it downgraded SJM Holdings Ltd.'s corporate family rating to Ba2 from Ba1 and lowered to Ba3 from Ba2 the backed senior unsecured ratings on the bonds issued by Champion Path Holdings Ltd. that SJM guarantees. The ratings remain on review for further downgrade.

"The downgrade mainly reflects SJM's continued delay in its execution of its refinancing plan, which raises some concern over its financial and liquidity management," said Sean Hwang, a Moody's assistant vice president and analyst, in a press release.

SJM has facilities of HK$19 billion that as of Dec. 31 had a HK$13 billion balance coming due on Feb. 28. The delay is due to pending regulatory approvals, and SJM is working on an extension in case of further delay.

"The review for downgrade reflects the fact that SJM's refinancing risk will remain elevated until its near-term maturities are fully refinanced. A further downgrade is possible if SJM fails to secure long-term financing to address the maturities in a timely manner," said Hwang.

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