S&P affirms Country Garden

Standard & Poor's said it affirmed its BB long-term corporate credit rating on Country Garden Holdings Co. Ltd. S&P also said it assigned a rating of BB- to the proposed seven-year fixed-rate senior unsecured notes issued by Country Garden that will be used to conduct the repurchasing. The rating on the notes is subject to final documents.

The outlook was revised to negative from stable.

The ratings were affirmed following news that the company has offered to buy back all of its outstanding convertible bonds due 2013, S&P said.

But the news has led to a negative outlook because S&P said it believes the company's tender offer, along with its offering of a high-yield bond, will likely pressure the credit ratios when combined with the weaker-than-expected 2009 results.

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