Moody's slices RiseSun

Moody's Investors Service said it lowered the corporate family rating of RiseSun Real Estate Development Co., Ltd. to B3 from B1. The agency also downgraded to Caa1 from B2 the backed senior unsecured rating on the bonds issued by RongXingDa Development (BVI) Ltd. and guaranteed by RiseSun.

“"The ratings downgrade reflects RiseSun's increased refinancing risks because of its weakened liquidity and funding access and sizable maturing debts," said Kelly Chen, a Moody's assistant vice president and analyst,” said in a press release.

RiseSun has about $780 million of offshore bonds maturing before the end of April. The agency said it also sees the company’s contracted sales declining over the next six to 12 months, driven by weaker homebuyer confidence.

The outlook remains negative.

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