Moody's cuts Shimao Property

Moody's Investors Service said it downgraded the corporate family rating of Shimao Property Holdings Ltd. to Ba3 from Ba2, along with the company's senior unsecured bond rating to B1 from Ba2 due to subordination risk.

The outlook is negative.

The downgrade has been driven mainly by the high probability that Shimao's sales performance will be weaker than expected because of the softening property market, Moody's said.

Such under performance will further pressure its near- to medium-term financial and liquidity profiles while the operating environment remains challenging, the agency said.

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