SINGAPORE, Feb 29 (Reuters) - Moody’s said late on Friday it has downgraded east China-based refiner Wanda Group Co Ltd’s corporate family rating to B3 from B1, citing a weak refining industry outlook and the firm’s high refinancing risks.
The downgrade came a day after Reuters reported that Hontop Energy Pte Ltd, Wanda’s Singapore-based oil trading unit, has gone into receivership.
Moody’s also changed Wanda’s outlook to rating under review from negative.
“Slower demand growth, excessive industry capacity in China and higher business volatility will heighten operational risk and increase pressure on Wanda Group’s revenue and profitability over the next 12-18 months, reducing the company’s buffer against industry volatility and weakening its liquidity profile,” Moody’s senior analyst Wang Ying said.
Wanda Group operates a 100,000-barrels-per-day refinery in Dongying of Shandong province. (Reporting by Chen Aizhu Editing by Leslie Adler)