S&P cuts Greentown China

Standard & Poor's said it lowered its long-term corporate credit rating on Greentown China Holdings Ltd. to B from B+ along with the rating on the company's outstanding senior unsecured notes to B- from B.

The outlook is negative.

The downgrade was due to the company's high leverage and weak cash flow protection, S&P said.

Greentown has maintained aggressive debt-funded expansion even though its credit ratios have continued to deteriorate, the agency said.

Greentown's 2009 annual results also were weaker than expected, despite strong property sales, the agency added.

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