Moody’s lowers Greenland Global

Moody’s Investors Service said it downgraded Greenland Global Investment Ltd.’s senior unsecured notes to C from Caa3, its medium-term note program to (P) C from (P) Caa3, Greenland Hong Kong Holdings Ltd.’s dollar-denominated notes to Caa3 from Caa1 and its MTN program to (P) Caa3 from (P) Caa1.

The agency concurrently downgraded the corporate family ratings of the issuers’ parent, Greenland Holding Group Co. Ltd. to Ca from Caa2, Greenland Global to Caa2 from B3 and Greenland Hong Kong to Caa2 from B3. Greenland Holding guarantees Greenland Global’s notes. Greenland Hong Kong's MTN program and the related notes are supported by a deed of equity interest purchase undertaking and a keepwell deed between Greenland Holding, Greenland Hong Kong and the bond trustee.

Moody’s noted that Greenland Holding reported it failed to repay the $22.5 million principal on its offshore bond that was due June 25, but settled the payment on Tuesday.

“Although the company made the payment after the seven-day grace period, the missed payment indicates the company's weak liquidity and constrained financial flexibility to meet its debt obligations over the next three to six months. The company will have to rely on asset disposals or other fundraising plans for debt servicing, although such fundraising activities carry high uncertainties,” Moody’s said in a press release.

The outlook is negative.

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