Moody's up Citic Pacific

Moody's Investors Service said it upgraded to Ba1 from Ba2 Citic Pacific Ltd.'s corporate family rating and Citic Pacific Finance (2001) Ltd.'s $450 million bond rating.

The outlook is negative.

This action concludes the rating review that began in Nov. 2008 after the company's report of material losses from leveraged foreign-exchange contracts and that Citic Group had provided it with a standby facility, agreed to subscribe to a convertible bond and would take over some of the outstanding foreign-exchange contracts, Moody's said.

The upgrade primarily reflects strong potential financial support pledged from Citic Group for Citic Pacific, Moody's said.

Citic Group's actions are clear demonstrations of its willingness and ability to support Citic Pacific in time of difficulties, the agency said.

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