Moody's: Sino-Forest unchanged

Moody's Investors Service said that Sino-Forest Corp.'s new RMB 350 million loan facility from the China Development Bank to fund the company's long-term planting will not impact the ratings.

The proceeds will be used to fund a portion of Sino-Forest's land lease prepayment for the plantation of 200,000 hectares of fast-growing species, Moody's said.

Sino-Forest's debt leverage will not increase in any material way because of the $50 million loan facility, which will be drawn over five years, the agency said.

Its plan to plant 200,000 hectares will preserve its competiveness and align it with the government's policy to preserve forests and reduce the domestic deficit in wood supply, Moody's said.

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