Moody’s cuts Greenland ratings to negative

Moody's Investors Service said it revised the outlook on the following ratings to negative from stable:

• Greenland Holding Group Co. Ltd.’s Baa3 issuer rating;

• Greenland Global Investment Ltd.’s provisional Baa3 senior unsecured medium-term note program rating, based on the unconditional and irrevocable guarantee of Greenland Holding, and the Baa3 senior unsecured debt ratings assigned to the dollar-denominated notes issued under the program; and

• Greenland Hong Kong Holdings Ltd.’s Ba1 corporate family rating, provisional Ba1 senior unsecured rating assigned to its medium-term note program; and the Ba1 senior unsecured rating assigned to its notes.

Greenland Hong Kong’s medium-term note program and the related notes are supported by a Deed of Equity Interest Purchase Undertaking and a Keepwell Deed between Greenland Holding, Greenland Hong Kong and the bond trustee.

At the same time, Moody's affirmed all ratings of Greenland Holding, Greenland Global and Greenland Hong Kong.

"The change in rating outlook to negative from stable reflects our concerns over Greenland Holding's high debt leverage," Moody's vice president and senior credit officer Kaven Tsang said in a news release.

Greenland Holding's total debt increased to RMB 191.5 billion at end-2014 from RMB 129.5 billion at end-2013, with much of the increase contributed by its property segment.

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