Moody's cuts China Properties to Caa1

Moody's Investors Service said it downgraded to Caa1 from B2 the corporate family and senior unsecured bond ratings of China Properties Group Ltd.

The outlook is negative.

The action has been driven by a concern that China Properties' has yet to confirm its refinancing plan for the RMB520 million bilateral bank loan, which will fall due before the end of March, Moody's said.

This has greatly heightened the company's liquidity risk, which has already been adversely affected by its weaker-than-expected property pre-sales and accelerating land premium payments in 2008, the agency said.

The downgrade also has been driven by concerns over China Properties' limited ability to secure sufficient bank facilities, both onshore and offshore, to support its development activities, Moody's added.

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