Moody's cuts Sino-Ocean

Moody's Investors Service said it downgraded the unsecured bonds guaranteed by Sino-Ocean Group Holding Ltd. to Caa3 from Caa1, the securities it guarantees on a subordinated basis to C from Caa3 and its

corporate family rating to Caa2 from Caa1.

The backed senior unsecured bonds were issued by Sino-Ocean Land Treasure Finance I Ltd., Sino-Ocean Land Treasure Finance II Ltd., and Sino-Ocean Land Treasure IV Ltd. and the subordinated, guaranteed perpetual capital securities were issued by Sino-Ocean Land Treasure III Ltd.

"The rating downgrades reflect Sino-Ocean's weak liquidity and credit profile, and our expectation of weakened support from China Life Insurance Co. Ltd. (China Life, insurance financial strength rating A1 stable), Sino-Ocean's largest shareholder, to Sino-Ocean on a timely basis," said Cedric Lai, a Moody's vice president and senior analyst, in a press release.

Additionally, Moody’s noted that on Wednesday Sino-Ocean asked its bondholders for about a two-month interest extension on three series of its dollar-denominated bonds.

The outlook remains negative.

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