Moody's: Greentown China on uncertain review

Moody's Investors Service said it placed its Caa1 corporate family and Caa2 senior unsecured debt ratings on Greentown China Holdings Ltd. on review, with direction uncertain.

"The review has been triggered by Greentown's upcoming repayment of its RMB 2.2 billion convertible bond, putable on May 18, 2010," said Kaven Tsang, Moody's lead analyst for Greentown.

"Moody's expects Greentown will be able to make the payment with internal reserves -- given the company's strong presales in 2009 and over the past few months, as well as its holdings of around RMB 9.4 billion in unrestricted cash as of end-2009 -- but any deviation from such expectation will pressure the ratings downward," said Tsang.

"However, if Greentown can service the convertible bond payment without material weakening to its liquidity or financial profiles, the ratings could face upward pressure," added Tsang.

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