addition, we have no clarity about Chaoda offshore cash

S lowers Chaoda rtg to ‘B

(The following statement was released by the rating agency)

Nov 25

We view Chaoda liquidity as canada goose weak and we believe the company current offshore cash balance and other sources of liquidity could be insufficient if the convertible bond becomes payable.

There is a lack of clarity over the company current offshore cash balance, and we cheap Canada Goose believe the company has limited ability canada goose coats on sale to access the capital markets.

According canada goose store to our criteria, companies Canada Goose online with a weak liquidity score will not receive a rating higher than We are therefore lowering the corporate credit rating on Chaoda to from

We have kept all the ratings on CreditWatch with negative implications.

Standard Poor Ratings Services said today that it had lowered the canada goose deals long term canada goose black friday sale corporate credit rating on Chaoda Modern https://www.canadagoosejacketca.ca Agriculture (Holdings) Ltd. to from At the Canada Goose Jackets same time, we lowered the Greater China credit scale ratings on Chaoda to from We kept all of the ratings canadian goose jacket on CreditWatch with negative implications, where they were originally placed on Oct. 4, 2011.

lowered the rating on Chaoda by three notches 2018 canada goose outlet to reflect our view canada goose clearance that the company liquidity is weak and that canada goose outlet toronto factory its current offshore cash balance and other sources of liquidity could be insufficient if, at investors Canada Goose Outlet request, it needs to early redeem its US$200 million convertible bond due 2015, said buy canada goose jacket cheap Standard Poor credit analyst Joe Poon. addition, we have no clarity about canada goose black friday sale Chaoda offshore cash balance. We also believe the company has limited access to capital canada goose clearance sale markets. According to our criteria, companies with a weak liquidity score will not receive a rating higher than

The rating remains on CreditWatch to reflect our uncertainty over the strength of Chaoda liquidity and its ability to repay the convertible bond in a timely manner.

Share trading in Chaoda was suspended on Sept. 26, 2010. Under the terms of the convertible bond, holders have the option to require Chaoda to Canada Goose Coats On Sale buy back the bond if shares in the company are suspended for more than 60 consecutive days on the stock exchange. In our view, if the bond repayment is accelerated, Chaoda liquidity position will be materially weakened.

The rating on Chaoda continues to reflect the company weak corporate governance, extensive related party transactions, very aggressive growth appetite, and exposure to a fragmented market. We canada goose outlet store locations also believe that Chaoda has a mixed track record buy canada goose jacket in transparency and information disclosure. The company established position as an industrialized agriculture enterprise and good canada goose replica geographic diversification temper these weaknesses.

We view Chaoda as having weak sources of liquidity to cover its needs in the next 12 months if the convertible bond becomes repayable soon. We note the disposal of shares in Asian Citrus Holdings Ltd. Canada Goose Parka for about Hong Kong dollar 466 million would provide some liquidity sources to buy back the convertible bond. In our view, Chaoda limited access to capital markets and historically limited access to bank borrowings may negatively affect its liquidity position. Liquidity will be weakened further if the company does not scale back its aggressive capital expenditure. As of Dec. Canada Goose Online 31, 2010, the company was in net cash position with Chinese renminbi 3.89 billion in cash and Canada Goose sale cash equivalents, and no short term debt due.

aim to resolve the CreditWatch after receiving more clarity about the convertible bond arrangements, the company liquidity situation, and the annual results, said Mr. Poon. We may lower the rating to the category or below in the near future if we believe Chaoda is highly vulnerable to nonpayment of its debt obligations.

RELATED CRITERIA AND RESEARCH Chaoda Modern Agriculture (Holdings) Ltd. Rating Lowered to And Placed On Watch Negative On Share Suspension And Investigation, Oct. 4, 2011 canada goose coats.

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