Friday, April 15, 2011
In other news...
...looks like computers are useful, cars are more efficient than horses, and it appears plastics have many industrial applications.
This was obvious years ago...to all those who looked.
BEIJING, April 14 (Reuters) - Moody's Investors Service on Thursday downgraded its outlook for China's property sector to negative from stable on concerns about deteriorating credit conditions for developers over the next 12 to 18 months.
The downgrade came a day after Premier Wen Jiabao told a cabinet meeting that home prices were still rising overly fast in some cities and reaffirmed intentions to keep tightening policies in place against property speculators.
Moody's said in a report that reduced bank lending, rising interest rates and increasing property supply would inevitably bring down sales and profit margins while also worsening their balance sheet liquidity for some developers.
"During the next 6-12 months, Chinese property developers will face challenges in securing debt financing, as the government enforces its strategy of slowing monetary growth to reduce the risk of accelerating inflation and to manage domestic banks' exposure to the property sector," the ratings agency said.