Moody's downgrades Lumena

Moody's Investors Service said it downgraded Lumena Resources Corp.'s corporate family and senior unsecured bond ratings to B2.

The outlooks are stable.

This completes a review that began Dec. 3, following news that Lumena's controlling shareholder, Suolang Duoji, had pledged a stake of about 20.5% in the company for a short-term loan from Bank of China International.

The pledging of a major stake in the company by the chairman and founder for his own purpose raises concern over Lumena's corporate governance and shareholder ambitions, Moody's said.

Lumena has a short track record as a listed entity and lacks a history of strong governance or transparency, the agency added.

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