Moody's may lower Citic Pacific

Moody's Investors Service said that it will continue to review for possible downgrade the Baa3 issuer rating of Citic Pacific Ltd. and the Baa3 senior unsecured rating for Citic Pacific Finance Ltd.'s bond.

This follows the announcement that, as part of a restructuring in Hong Kong's airline industry, Citic Pacific will dispose of all its ownership in Hong Kong Dragon Airlines Ltd. (Dragonair) and reduce its shareholdings in Cathay Pacific Airways Ltd. to 17.5% from 25.4%.

The ratings were put on review in April following Citic Pacific's acquisition of mining rights in an iron ore mine in Western Australia, the agency noted.

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