[ET Net News Agency, 4 September 2015]  Moody's Investors Service said that Glorious Property Holdings Limited's further deterioration in liquidity is credit negative. However, the poor 1H 2015 results and high risk of default are already reflected in the company's Caa3 corporate family and Ca senior unsecured ratings.
  The ratings outlook is negative.
  "Glorious' liquidity profile has further deteriorated during 1H 2015. The company continues to face a high risk of default as its ability to refinance the $300 million senior notes maturing on 25 October 2015 has further weakened," said Stephanie Lau, a Moody's Assistant Vice President and Analyst.
  The company's cash position has declined to RMB1.0 billion at end-1H 2015, from RMB1.4 billion at end-2014. Glorious was also overdue for its repayment of RMB1.7 billion in principal and RMB124 million in interest as at end-June 2015, which has been viewed as a cross-default event in the company's certain other borrowings, thus leading to certain debt with principals amounting to RMB7.4billion being re-classified as current liabilities, as at end-June 2015. Total reported short term debt was at RMB21.8 billion as at end-June 2015.
  As a result, the company's cash to short term debt ratio fell to 4.7% as of end-June 2015 from 8.7% at end-2014.
  For the first seven months of 2015, Glorious reported contracted sales of RMB2.5 billion, representing a year-on-year increase of 26.7%. However, the company's contracted sales performance remained week which also affected its liquidity profile.
  "Glorious' ability to seek additional financing to fund its near-term obligations is uncertain," added Lau. (KL)