Moody's downgrades Kaisa

Moody's Investors Service said it downgraded Kaisa Group Holdings Ltd.’s corporate family rating to Caa1 from B2. The agency also trimmed the senior unsecured rating on Kaisa’s bonds to Caa2 from B3.

The outlook has been changed to negative from under review. This concludes the review for downgrade on Kaisa's ratings started on Oct. 18, Moody’s said.

"The downgrade of Kaisa's CFR to Caa1 reflects the company's heightened refinancing risks because of its weakened funding access and sizable debt maturities over the next 12-18 months. The approval of an interim dividend payment at a time when liquidity preservation is crucial, also weakens the protection to creditors," said Cedric Lai, a Moody's vice president and senior analyst, in a press release.

"The negative outlook reflects the uncertainties around Kaisa's ability to address its debt maturities over the next six to 12 months," added Lai.

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