Moody's drops 3D-GOLD

Moody's Investors Service said it has downgraded the corporate family and senior unsecured ratings of 3D-GOLD Jewellery Holdings Ltd. (previously known as Hang Fung Gold Technology Ltd) to B3 from Ba3.

At the same time, the ratings remain on review for possible downgrade, the agency said.

"The rating action reflects significant uncertainty over the company's current liquidity position, as information on its cash sources and payment needs is lacking," said Renee Lam, a Moody's vice president.

Moody's noted recent press reports alleging HK$200 million funds is missing from 3D-GOLD; these reports have been neither confirmed nor refuted by the company.

"The recent adverse and un-clarified news on funds misappropriation is likely to restrict and generate uncertainty over the company's continued access to bank funding, which is mostly uncommitted and repayable on demand," said Lam, adding, "This uncertainty has also materially increased the risk of triggering the cross-default provision in the company's $170 million bonds due 2014."

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