The ratings outlook remains negative.

"We do not believe that the stepping-down of Mr. Zhang Zhi Rong, the chairman of the board, will have a material negative impact on the company's day-to-day operations. This is because the existing management team has a track record in managing the company through the recent down-cycle", says Franco Leung, a Moody's Assistant Vice President and Analyst.

Mr. Cheng Li Xiong, the executive vice chairman of the board and chief executive officer of the company, has been appointed as the chairman of the board in place of Mr. Zhang.

Moody's considers that the management team has demonstrated a reasonable track record in managing the company's operations and refinancing activities.

Contracted sales amounted to RMB9.8 billion in January-October 2012, or 75% of its full-year 2012 target of RMB13 billion. While this figure is slightly below Moody's expectations, the company has demonstrated improved sales execution since April, particularly in regions affected by purchase restrictions.

"It is further unlikely that the change of control clause will be triggered for a breach of the bond covenants in the near term as the chairman has indicated his willingness to hold his current shareholdings," adds Leung, who is also the lead analyst of Glorious Property.

As of 27 November 2012, Mr. Zhang's shareholding of the company amounted to around 68.4%.

The principal methodology used in rating Glorious was the Global Homebuilding Industry Methodology published in March 2009. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.

Glorious Property Holdings Limited is a medium-sized residential property developer based in Shanghai. It has now expanded to eastern and northern China. It had a land bank of around 18.1 million sqm (GFA) in Shanghai, Beijing, Tianjin, and several second-tier cities in the Yangtze River Delta and Northeast China as of June 2012. Glorious was listed on the Stock Exchange of Hong Kong in 2009. Its chairman, the major shareholder, owns 68.4%, and also has a shipbuilding company listed in Hong Kong.

Franco LeungAsst Vice President - Analyst Corporate Finance Group Moody'sInvestors Service Hong Kong Ltd. 24/F One Pacific Place 88 Queensway Hong Kong China (Hong Kong S.A.R.) JOURNALISTS: (852) 3758 -1350 SUBSCRIBERS: (852) 3551-3077 Gary Lau MD - Corporate Finance Corporate Finance Group JOURNALISTS: (852) 3758 -1350 SUBSCRIBERS: (852) 3551-3077 Releasing Office: Moody's Investors Service Hong Kong Ltd. 24/F One Pacific Place 88 Queensway Hong Kong China (Hong Kong S.A.R.) JOURNALISTS: (852) 3758 -1350 SUBSCRIBERS: (852) 3551-3077 (C) 2012 Moody's Investors Service, Inc. and/or its licensors and affiliates (collectively, "MOODY'S"). All rights reserved.

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