Brascan, the Canadian property company, could lose its investment grade credit rating if it emerges victorious in the takeover fight against Morgan Stanley for Canary Wharf, the UK property group.

Moody's Investors Service placed Brascan's Baa3 debt rating, which is already on the cusp of high-yield, or junk status, on review for a possible downgrade, pending the outcome of the Canary Wharf battle.