Moody's cuts Golden Eagle outlook to negative

Moody’s Investors Service said it has changed Golden Eagle Retail Group Ltd.'s outlook to negative from stable.

At the same time, Moody's has affirmed its Baa3 issuer and senior unsecured ratings.

"The change in outlook reflects its concern that Golden Eagle's acquisition of a property project in Suzhou will raise its financial leverage," said Lina Choi, a Moody's vice president and senior analyst.

According to the agency, the pro rata consolidation of the property company's debt will raise Golden Eagle's adjusted debt/EBITDA to about 4x over the next 12 months from 3.1x for the 12 months ended June 2014.

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