Moody's: No change for SRE Group

Moody's Investors Service said it sees no immediate impact on SRE Group Ltd.'s B2 corporate family rating, B3 bond rating and negative outlook after it announced it had entered into agreements with China New Town Development Ltd., a 49.19%-owned associate of SRE, to subscribe for its new shares and convertible bond issuances for a maximum consideration of about RMB410 million.

Moody's noted the transaction is subject to approvals.

While the scale of investments is not material - compared to the size of SRE's operation - it will weaken the company's liquidity, the agency said.

The impact is mitigated by better-than-expected presales in the first half of 2009 and its fundraising activities in the past few months, Moody's said.

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