TSC Ratings' Updates: Xinyuan Real Estate

Note: Our quantitative model makes stock recommendations based on GAAP figures that may differ materially from data as reported by the companies themselves. As a result, rating changes are occasionally driven by so-called nonrecurring items. As always, we urge readers to use TSC Ratings' reports in conjunction with additional information to construct their opinions on the value that should be placed on any given stock.

The following ratings changes were generated on Monday, March 30.

We've downgraded Bermuda-based liquefied natural gas shipping company Golar LNG(GLNG Quote) from hold to sell, driven by its deteriorating net income, generally weak debt management, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

Net income fell from $910,000 in the same quarter last year to -$57.7 million in the most recent quarter. Golar has a debt-to-equity ratio of 3.5, which is above the industry average. Return on equity has decreased compared with the year-ago quarter. Net operating cash flow decreased 49.4% to $17.2 million. ...