Moody's slashes Road King

Moody's Ratings said it downgraded Road King Infrastructure Ltd.'s corporate family rating to Caa2 from B3.

Concurrently, the agency lowered to Caa3 from Caa1 the backed senior unsecured ratings on the notes issued by the company's financing vehicles: RKI Overseas Finance 2017 (A) Ltd., RKP Overseas Finance 2016 (A) Ltd., RKPF Overseas 2019 (A) Ltd., RKPF Overseas 2019 (E) Ltd. and RKPF Overseas 2020 (A) Ltd.

Moody's said it also maintained the negative outlook on all entities.

"The rating downgrades and negative outlook mainly reflect Road King's heightened refinancing risk given its material debt maturities over the next six to 12 months, and its weak liquidity because of continued weak sales, constrained funding access and inadequate liquidity management measures to address its near-term refinancing needs," said Cedric Lai, a Moody's vice president and senior analyst, in a press release.

Road King’s $323 million of bonds are due in September and $197 million of bonds are due in March 2025. Moody's said Road King's liquidity will become inadequate to meet all its payment obligations over the next 12-18 months, despite having raised funds through the sale of its toll road business to handle part of its maturing debt.

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