Shandong Ruyi: Moody’s downgrades company rating to CAA1

Shandong Ruyi, on alert. Moody’s, the rating agency, has lowered the rating of the Chinese group to CAA1, which assumes that the company’s bonds, valued at 345 million dollars are on the credit watch list.

Also, analysts believe that the problem of the Chinese company’s debt is related to the acquisitions made by the company in the last ten years, which have meant paying out 40,000 million yuan (5.6 billion dollars).

The company, which owns Smcp and British companies like Aquascutum and Taylor&Lodge, has been expanding its brand portfolio in recent months. The last acquisition the group has been Invista, owner of Lycra.