Moody's may cut China South

Moody's Investors Service said it put China South City's B1 corporate family rating and B2 senior unsecured rating on review for possible downgrade.

The review follows the company's announcement of a framework agreement with the Howard Group to construct and develop a large scale integrated logistics and trade center in Harbin, China, the agency said. China South's level of engagement in the Harbin project, which will be much larger than its existing centers in Shenzhen, is beyond Moody's expectations.

Moody's noted that it is concerned that China South has yet to demonstrate success beyond Shenzhen and its investment in Harbin could greatly escalate its financial and operating risk.

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