Moody's: Powerlong to positive

Moody's Investors Services said it changed to positive the outlook of Powerlong Real Estate Holdings Ltd.

The agency also confirmed Powerlong's B3 corporate family and Caa1 senior unsecured rating.

This action concludes a review that began in January, Moody's said.

The outlook revision reflects Powerlong's improving contract sales, higher rental income and a slowdown in its business expansion, the agency said.

The company's contract sales grew by 18.9% year-over-year in 2012, thanks to a larger number of projects available for sale and a stronger contribution from residential units, Moody's said.

A slowdown in the economy and a tightening in credit availability in lower-tier cities, coupled with the effect of product mix, resulted in only 4.4% growth in the contract sales of its commercial product, but stronger residential sales upheld the group's performance, the agency said.

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