Moody's reviews Greentown for downgrade

Moody's Investors Service said it placed Greentown China Holdings Ltd.'s Ba2 corporate family rating and senior unsecured bond rating on review for possible downgrade.

"The review is prompted by Greentown's series of land acquisitions recently, which is at a pace beyond our expectation," Kaven Tsang, Moody's lead analyst for Greentown, said in a written statement.

"Greentown's leverage is therefore expected to remain at a high level relative to its rating in the medium term without further increase in its equity capital," Tsang said.

Moody's said its review will focus on the company's financing arrangements for funding the new projects, the likelihood of its achieving expected sales and its ability to generate liquidity.

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