Moody's may cut China Properties

Moody's Investors Service said it placed under review for possible downgrade the B2 corporate family and senior unsecured bond ratings of China Properties Group Ltd.

The action has been prompted by China Properties' slower than expected progress in securing refinancing for its RMB520 million bilateral bank loan, which will fall due in late March 2009, Moody's said.

This may heighten the company's liquidity risk, the agency said, which already has been affected by its weaker than expected property pre-sales and an acceleration in land premium payments in 2008.

Restoring balance sheet liquidity will continue to be challenged by the current soft nature of the property market in China and the tight credit environment, Moody's added.

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