Credit ratings agency Moody’s has downgraded Chinese owner of Aquascutum and Gieves & Hawkes because of the “limited progress on its refinancing plans”.
Moody’s downgraded Shandong Ruyi Technology Group’s corporate family rating to “Caa1” from “B3”.
It has also downgraded the rating on the senior unsecured notes issued by Prime Bloom Holdings and guaranteed by Shandong Ruyi, to “Caa2” from “Caa1”.
The outlook assigned to Shandong Ruyi is “negative”.
“The downgrade reflects our increased concerns over Shandong Ruyi’s heightened refinancing risk, given its large upcoming debt maturities, continued weak liquidity, and limited progress on its refinancing plans,” said Chenyi Lu, a Moody’s vice-president and senior credit officer.
Earlier this month it emerged that Portuguese textiles supplier Calvelex was threatening to sue Shandong Ruyyi over unpaid invoices.