LONDON, Aug 31 (Reuters) - Moody's slashed the credit ratings of Chinese property developer Country Garden by three notches to Ca from Caa1 on Thursday due to worries the firm could be on the brink of default. "The rating downgrades with negative outlook reflect Country Garden's tight liquidity and heightened default risk, as well as the likely weak recovery prospects for the company's bondholders," Kaven Tsang, a Moody's Senior Vice President, said. The struggles of Country Garden were also reflected in a proposed equity issuance on Wednesday to help settle debt repayments, as well as two missed dollar-dominated coupon payments earlier in the month. The company warned on Wednesday of default risks if its financial performance continues to deteriorate, and said it "felt deeply remorseful" for its record loss in the first half. (Reporting by Marc Jones)