[ET Net News Agency, 3 November 2014] Moody's Investors Service said that Mongolian
Mining Corporation's (MMC, Caa2 negative)(00975) equity issuance of HKD1.56 billion is
credit positive and will alleviate the company's liquidity pressures, given its large
debt-servicing requirements and a challenging operating environment.
The rating outlook continues to be negative.
On 31 October, MMC announced that it will raise equity through the issuance of around
5.6 billion rights shares for a subscription price of HKD0.28 per share.
"A successful raising will boost MMC's liquidity position by about USD200 million --
which along with existing cash on hand of USD60 million as at 30 September 2014 -- will be
sufficient to address its debt repayments for the next 12 months of USD144million," said
Simon Wong, a Moody's Vice President and Senior Credit Officer/ Manager. (KL)