Moody's cuts Country Gardens

Moody's Investors Service said it downgraded Country Garden Holdings Co. Ltd.'s corporate family rating to Ba2 from Ba1 and senior unsecured debt rating to Ba3 from Ba1 due to increased risk of structural subordination.

The outlook is negative.

This concludes a review for possible downgrade that began in February.

The downgrades were driven by Country Garden's lower-than-expected contracted sales in 2008 and resulting weakened liquidity position, Moody's said.

The agency said it expects that this situation will persist in 2009 as uncertainty in the Chinese property market will likely remain.

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