Moody's Investors Service yesterday changed the review direction of the ratings of Guangdong Enterprises (Holdings) to uncertain from possible downgrade as it pointed to a probable improvement in the company's operations.
The United States credit rating agency said the company's long-term foreign debt ratings remained on review but it saw a chance for an upgrade.
It would focus on the programme to be launched by the company's managers and owner, Guangdong provincial government, aimed at strengthening operations. Details were not yet available, it said.
Market rumours say the programme would entail a management reshuffle, injection of assets such as Guangdong Development Bank, and a capital infusion of more than $2 billion.
Moody's said the future financial strength of the company was dependent on the substantiality of any financial support it might obtain from its owner.
Guangdong Enterprises has asked bankers to allow it to repay the entire amount of a syndicated loan arranged by Bankers Trust in three weeks from the due date, which was last Monday.
