Moody's cuts Road King view to negative

Moody's Investors Service said it changed the outlook to negative from stable for the corporate family and senior unsecured debt ratings of Road King Infrastructure Ltd.

The negative outlook is driven by Road King's weaker-than-expected contracted property sales in 2008, Moody's said, and the ongoing pressure exerted on its profitability by some of the high-cost inventory in its ex-Sunco portfolio.

Such pressure also has been heightened by the company's need to generate higher sales under a trend of price reductions, the agency said.

The negative outlook also reflects concerns over execution risk in relation to Road King's ability to achieve its sales target for 2009, Moody's added.

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