Moody's downgrades Neo-China

Moody's Investors Service said it downgraded Neo-China Land Group (Holdings) Ltd.'s corporate family and senior unsecured ratings to Ca from Caa1.

The outlook is negative.

"The rating action is taken after Neo-China missed a coupon payment of US$19.5 million in relation to its US$400 million 2014 bond," Kaven Tsang, a Moody's assistant vice president, said in a statement.

"While Neo-China has a 30-day grace period to make up the coupon payment and avoid an event of default, it is highly uncertain that the company can meet its payment obligation by the due date, given its very tight liquidity position," Tsang said.

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