Moody's eyes China Jinmao for downgrade

Moody's Investors Service said it placed the following ratings of China Jinmao Holdings Group Ltd. and its wholly-owned financing vehicles on review for downgrade. The ratings being reviewed are China Jinmao's Baa3 issuer rating, the Baa3 backed senior unsecured rating on the dollar-denominated notes issued by Franshion Brilliant Ltd., a wholly-owned subsidiary of China Jinmao, and the Ba2 backed preferred stock rating. China Jinmao guarantees the notes.

Previously, the outlooks were stable.

"The review for downgrade reflects high uncertainties over the company's ability to recover its gross profit margins and weakened credit metrics, amid uncertain recovery prospects for China's property market, as reflected in our negative outlook for the sector. The company's weak credit metrics will pressure its rating," said Cedric Lai, a Moody's vice president and senior analyst, in a press release.

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