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Moody's confirmed the China Glass B1 rating-a negative outlook

Post Time:May 19,2008Classify:Company NewsView:326

On Friday, Moody's Investors Service confirmed the family rating and senior non-mortgage bond rating of China Glass Holdings Ltd. (3300.HK, Glass China for short) to B1grade. The rating outlook remains negative.

China Glass announced before that it planed to invest 800 million yuan for three Low-E glass production lines in Jiangsu Province.

Renee Lam, Moody's vice president and senior analyst, said that the negative rating outlook indicated that China Glass would face some related executing and financial risks in the new investments. She also added that this investment had not been pre-arranged, and in the current environment of capital market, it’s still unknown whether China Glass can timely and cost-effective way to obtain the necessary funds.

Renee Lam said, the new production line will produce high value-added Low-E glass, which will help improve the product mix of China Glass and strengthen its long-term competitiveness, but in the investment phase, any cost delay or overrun will give pressure to the company’s circulating funds.

Source: GlassInChinaAuthor: admin

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