Moody’s changes LVGEM to negative

Moody's Investors Service said it changed the outlook on LVGEM (China) Real Estate Investment Co. Ltd.'s B2 corporate family rating and the B3 backed senior unsecured rating on the dollar-denominated notes guaranteed by LVGEM and issued by Gemstones International Ltd. to negative from stable.

The agency also affirmed both ratings.

"The negative outlook reflects LVGEM's acquisition of the sizable office project in Hong Kong, which will weaken its liquidity position and increase its debt leverage, without the benefit of any near-term revenues from the project," Chris Wong, Moody's analyst, said in a news release.

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