Moody's affirmed the Ba1 long-term corporate family rating of China's Guangxi Financial Investment Group Co. Ltd. and changed its entity-level outlook to developing from stable.
The rating agency said Jan. 21 that it also affirmed the company's "b1" baseline credit assessment.
The outlook revision follows the company's Jan. 8 announcement that it became a wholly owned subsidiary of Guangxi Investment Group Co. Ltd. The revision reflects the uncertainties surrounding both the stand-alone credit profile and the level of government support available to Guangxi Financial Investment following the restructuring, the agency said.
On a stand-alone basis, Moody's said the "b1" baseline credit assessment reflects the company's weak profitability, increased operational risks and complexity arising from the evolving business mix, as well as a low level of liquid assets compared to the amount of debt maturing in one year.