Moody's may cut Country Garden

Moody's Investors Service said it placed Country Garden Holdings Co. Ltd.'s Ba2 corporate family rating and Ba3 senior unsecured bond rating on review for possible downgrade.

The review follows Country Garden's joint acquisition of a site in Guangzhou with Agile Property Holdings Ltd. and R&F Properties for RMB25.5 billion, Moody's said. The company's share of the investment will be about RMB8.5 billion and will be paid out over the next two years, the agency said.

This transaction, together with its earlier land acquisitions, will weaken the company's balance sheet liquidity, the agency said.

As a result, Country Garden's projected credit metrics will weaken in the coming years, Moody's said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.