S&P slashes Greenland Holding

S&P said it lowered Greenland Holding Group Co. Ltd.’s issuer rating to CC from B- and senior unsecured notes to C from CCC+. The agency also removed all the ratings from CreditWatch with negative implications where they had been placed on May 23.

The downgrades follow Greenland’s offer to extend the maturity of its U.S. dollar notes due June 25, S&P said.

“We lowered the rating on Greenland because we view the proposed transaction as a distressed maturity extension. We believe the company is vulnerable to nonpayment of its U.S. dollar-denominated senior notes upon maturity in the absence of the proposed transaction. Greenland's execution on asset disposals remains adversely affected by the prolonged lockdown in Shanghai while the company's access to its cash for debt repayment is highly uncertain, in our view,” S&P said in a press release.

The negative outlook indicates the likelihood of a downgrade to SD, or Selective Default, when the planned offer is completed, the agency said.

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