Moody’s ups Country Garden, debt to Ba1

Moody's Investors Service said it upgraded Country Garden Holdings Co. Ltd.’s corporate family and senior unsecured debt ratings to Ba1 from Ba2.

The outlook is stable.

The actions conclude the review initiated on April 2.

"The upgrade reflects Country Garden's strengths in funding and financial management," Moody's vice president and senior analyst Franco Leung said in a news release.

Country Garden has taken actions to improve its funding stability by raising offshore term funding, the agency said. For example, it issued offshore five-year bonds of $800 million in 2014 and obtained a four-year syndicated bank loan for HK$4.5 billion in 2H 2014. These financing activities have lengthened the average tenure of its debt portfolio and lowered the company's weighted average borrowing cost to 8.16% in 2014 from 8.54% in 2013.

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