Moody's upgrades Country Garden

Moody's Investors Service said it upgraded the corporate family and senior debt ratings of Country Garden Holdings Co. Ltd. to Ba2 from Ba3. The outlook is stable.

The agency said the upgrade reflects the consideration that Country Garden has established strong sales execution, supported by strong mass-market demand. Moody's believes the company can sustain its sales momentum given its competitive business model.

The company's Ba2 rating reflects its large size and good experience in suburban property development in China's Guangdong Province, the agency said.

However, the current Ba2 rating is constrained by Country Garden's large funding needs - given its rapid growth model - and its reliance on sales contributions from Guangdong Province, Moody's said.

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