Moody's report states that it has adjusted the outlook for Seazen Holdings and Seazen Development Holdings to negative, and removed the companies from the watchlist. The report states that the negative outlook reflects the risk that the company may face a change in control and deterioration of funding channels in the future if more negative news about Wang Zhenhua, the company's largest shareholder, emerges. Moody's also mentioned that the company's growth in contracted sales and liquidity can provide a buffer for dealing with the Wang Zhenhua litigation, therefore maintaining the company's rating unchanged.