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HONG KONG, Sept 25, 2013 - (ACN Newswire) - China ZhengTong Auto Services Holdings Limited ("ZhengTong Auto" or the "Company", together with its subsidiaries, the "Group", stock code: 1728), a leading luxury brands 4S dealership group in China, reported that Moody's Investors Service has confirmed the Group's Ba3 corporate family rating and stable credit metrics outlook following the Company's successful issuance of US$ 335 million investment grade bonds.
According to Moody's report, ZhengTong Auto has completed issue of US$ 335 million in 5-year investment grade bonds due 16 June 2018 with a 4.5% annual coupon rate. Proceeds shall be used to repay two current short-term loans, a RMB 1.0 billion loan due on 16 November 2013 and a RMB 1.2 billion loan due on 11 March 2014. Combining successful bond issuance and the Company's RMB 1.2 billion cash balance as of June 2013, Moody's believes the Company is well positioned to retire current loans with significantly strengthened capital structure and liquidity position.
Moody's also indicated that ZhengTong Auto's 1H2013 interim results were in line with the market expectation. Mainly attributed to the rapid growth in after-sales services, the Company has boosted its gross profit margin to 9.8% from 9.3% a year earlier, and is expected to secure its gross profit margin within 9% to 10% range during the next 12 months. The Company also presents a robust credit profile in China with total credit facility of RMB 11 billion readily available. Moody's expects the Company's 2H2013 revenue levels to reach even higher, given the favorable market seasonality and the new car models to be introduced during the second half of the year.
Additionally, Moody's forecasts the Company to maintain a Debt to EBITDA ratio at around 3x to 3.5x. Considering Company's current strong financial profile and its leading position in China's fast-growing luxury car dealership market, and with no major acquisition plans in the short term, Moody's confirms a stable credit outlook.
About China ZhengTong Auto Services Holdings Limited
ZhengTong Auto is a leading luxury branded 4S automobile dealership group in China focusing on six major luxury brands, namely, BMW/MINI, Audi, Mercedes, Land Rover/Jaguar, Porsche and Volvo. The Group currently operates a nationwide distribution network with 89 outlets in 29 major cities across 13 provinces in China, well positioned in both established and affluent first tier automobile markets as well as rapidly booming second- and third-tier regions. Each of the 4S dealership stores integrates the four principal automobile-related businesses: sales, spare parts, service and survey, and offers a broad range of automobile sales and after-sales services.
Issued by Porda Havas International Finance Communications Group for and on behalf of China ZhengTong Auto Services Holdings Limited.
Contact:
Porda Havas International Finance Communications Group
Kelly Fung
Tel: +852-3150-6763
Email: kelly.fung@pordahavas.com
Angie An
Tel: +852-3150-6736
Email: angie.an@pordahavas.com
Kannie Lam
Tel: +852-3150-6721
Email: kannie.lam@pordahavas.com
Tracy Yang
Tel: +852-3150-6752
Email: tracy.yang@pordahavas.com
Fax: +852-3150-6728
Topic: Press release summary
Source: China ZhengTong Auto Services Holdings Limited
Sectors: Daily Finance, Automotive
https://www.acnnewswire.com
From the Asia Corporate News Network
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