Moody's cuts Hopson Development

Moody's Investors Service said it downgraded Hopson Development Holdings Ltd.'s corporate family rating to B1 from Ba3, along with its senior unsecured bond rating to B2 from B1. This concludes a review that began in December.

The outlook remains negative.

The downgrades reflect an expectation that Hopson's business and liquidity risks will increase as a result of its aggressive expansion against the backdrop of a highly uncertain market environment, Moody's said.

In addition to its sizable land payments, the company also has material near-term refinancing needs, including a RMB1.83 billion convertible bond due in February 2010, the agency said.

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