361 Degrees CFO Change Before Results is Credit Negative: Lucror

 

(Bloomberg) -- 361 Degrees’ change of chief financial officer two weeks before the company’s FY 2020 interim results is credit negative, according to Lucror Analytics credit analyst Chuanyi Zhou.

* CFO Choi Mun Duen has resigned due to “a desire to focus on her family”, according to co. filing to Hong Kong exchange late Tuesday

** Choi replaced by Li Yuen Fai Roger, previously independent non-executive director: filing

* Change of leadership shortly before interim results “adds to our concern over the company’s corporate governance and credibility of financial information, especially after it changed its auditor in November 2019,” Zhou wrote in Wednesday report

* Notes firm previously changed its auditor to Moore Stephens from KPMG

* Co. has 7.25% note due 2021, Bloomberg-compiled data show

* NOTE: 361 Degrees Downgraded to B+ as Coronavirus Hurts Revenues: S&P

* NOTE: Auditor Change Triggers Record Slide in China Sportswear Stock

By Rebecca Choong Wilkins