Moody's could cut China South City

Moody's Investors Service said it placed China South City Holdings Ltd.'s B1 corporate family and its B2 senior unsecured debt ratings on review for downgrade.

The review follows China South's Dec. 5 response to a news article alleging that some of its projects do not comply with certain legal requirements in China.

"Moody's concern is that China South has not received all certificates and permits from the local governments for some of its projects in a timely manner and which could in the long term delay sales and increase development costs as it carries out measures to meet the relevant requirements," Moody's analyst Zou Jiming said in a news release.

"If the financial impact from this non-compliance is significant, it would pressure the company's current ratings."

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