Moody’s drops KWG to B1, debt to B2

Moody's Investors Service said it downgraded KWG Property Holding Ltd.’s corporate family rating to B1 from Ba3 and senior unsecured rating to B2 from B1.

The outlook is stable.

"The downgrade of KWG's ratings reflects our expectation that its debt leverage levels will remain high over the next 12-18 months, thereby positioning the company in the B1 rating category," Moody's vice president and senior credit officer Franco Leung said in a news release.

"The company's high debt leverage is driven by its large expenditures on land, corporate strategy of maintaining high profit margins, and the development of investment properties."

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