Moody's may cut Citic Resources

Moody's Investors Service said it put on review for possible downgrade the Ba2 corporate family rating of Citic Resources Holdings Ltd. and the Ba2 rating of the $1 billion seven-year unsecured senior notes issued by Citic Resources Finance (2007) Ltd. and guaranteed by Citic Resources.

The action reflects heightened downside risks to Citic Resources' business and financial profiles, Moody's said, in view of the lower-than-expected production at its Karazhanbas oil field and softer conditions in the commodities market.

The agency said it also is concerned with the company's ability to comply with the financial covenants under its borrowing documents in 2009, given a potential weakening in its financial performance.

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