[ET Net News Agency, 18 May 2016] Moody's Investors Service has downgraded the
following ratings of Beijing Capital Land Limited (02868) and its subsidiaries:
1. The corporate family rating of Beijing Capital Land Limited to Ba3 from Ba2;
2. The corporate family rating of International Financial Center Property Ltd. (IFC) to
B1 from Ba3;
3. The backed senior unsecured debt rating on the bonds issued by Central Plaza
Development Ltd. (CPD) to B1 from Ba3; and
4. The backed senior unsecured rating on the medium-term note (MTN) program of CPD to
provisional (P)B1 from provisional (P)Ba3.
The outlook on all ratings is negative.
This concludes the ratings review initiated on 29 February 2016.
Both the bonds and MTN program of CPD are guaranteed by IFC.
The bonds and MTN program are also supported by Deeds of Equity Interest Purchase
Undertaking and Keepwell Deeds between Beijing Capital Land Limited, CPD, IFC and the bond
trustee. Both CPD and IFC are wholly-owned subsidiaries of Beijing Capital Land Limited.
Additionally, Beijing Capital Group Co., Ltd. (Capital Group, Baa3 negative), the parent
of Beijing Capital Land Limited, provides Letters of Support in favor of Beijing Capital
Land Limited and IFC in connection with both the bonds and the MTN program.
"The rating downgrade of Beijing Capital Land Limited reflects its weakened credit
profile due to its high debt leverage and contracted profit margins," says Kaven Tsang, a
Moody's Vice President and Senior Credit Officer.
Beijing Capital Land Limited's Ba3 corporate family rating reflects its standalone
credit strength and a two-notch rating uplift, based on expected strong financial and
operating support from its parent, Capital Group.
The weakened standalone credit strength is primarily due to the company's strategy to
reposition its business to focus on major cities in China, including Beijing, Shanghai and
Tianjin, over the last 1-2 years. (KL)
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