This site uses cookies to provide you with a great user experience. By using BondbloX, you accept our use of cookies.
Seazen Group has been downgraded by one notch to B2 from B1 by Moody’s. Moody’s also downgraded the senior unsecured debt issued by New Metro Global Ltd and guaranteed by Seazen Group, by a notch to B3. The downgrade comes on the back of weakening credit metrics, liquidity buffer as a result of declining sales and constrained access to funding channels. Moody’s forecasts the gross contracted sales for Seazen to fall to ~RMB 78bn ($11bn) in 2023 from RMB 116bn ($16.4bn) in 2022. In addition, Moody’s expects the credit metrics of Seazen to continue weakening with its debt leverage (adjusted debt/EBITDA) increasing to 7-7.5x over the next year from 5.5x as of end June 2023. Moody’s has maintained the negative outlook on the entity reflecting uncertainty over its ability to restore operations and liquidity cushion over the next year.
Seazen dollar bonds continue to trade at distressed levels with its 4.5% 2026s at 25.2 cents on the dollar.