Moody's cuts Newland

Moody's Investors Service said it downgraded to B2 from B1 the senior secured rating of Newland International Properties, Corp. and placed the rating on review for possible downgrade.

This action reflects recent construction cost increases, which has resulted in a shortfall in the construction escrow account of about $26.9 million, Moody's said.

During its review, the agency said it will closely monitor the outcome of the construction shortfall process, as well as continued progress on unit sales and the related credit implications for Newland.

The rating would likely be stabilized upon successful replenishment of Newland's construction escrow account on or before the required date as well as progress of unit sales, the agency said.

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