Moody's slashes Country Garden

Moody's Investors Service said downgraded Country Garden Holdings Co. Ltd.'s corporate family rating to Caa1 from B1 and its senior unsecured rating to Caa2 from B1.

"The downgrade reflects Country Garden's heightened liquidity and refinancing risks in view of its deteriorated liquidity and financial flexibility, sizable refinancing needs and still-constrained access to funding," said Kaven Tsang, a Moody's senior vice president, in a press release.

The agency noted there are reports that Country Garden missed coupon payments for two dollar-denominated bonds that were due on Sunday. The company has 30 days to make up the payments.

The outlook remains negative.

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