Moody's views China Gezhouba negatively

Moody's Investors Service said it changed the outlook for Gezhouba Group Co. Ltd. (CGGC) and China Gezhouba Group Corp. (CGGC Group) to negative from stable and affirmed their Baa2 issuer ratings.

The agency also affirmed the Baa3 rating of the subordinated perpetual securities issued by China Gezhouba Grp (HK) Overseas Investment Co. Ltd. and guaranteed by CGGC.

"The negative outlook reflects CGGC's and CGGC Group's higher-than-expected leverage as a result of their investment in build-operate-transfer (BOT) and public-private partnership (PPP) projects and the challenges for the companies' ability to deleverage over the next 12-18 months," said Yuting Liu, a Moody's vice president and senior analyst, in a press release.

The agency noted that CGGC's and CGGC Group's leverage, as measured by adjusted debt/EBITDA, climbed to around 12x in 2022 from around 8x in 2021 but expects a gradual improvement over the next one to two years.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.