S&P might lower Sunac China

Standard & Poor's said it placed its BB- long-term corporate credit rating and cnBB+ long-term Greater China regional scale rating on Sunac China Holdings Ltd. on CreditWatch with negative implications.

The agency also placed its B+ long-term issue rating and cnBB long-term Greater China regional scale rating on the company's outstanding senior unsecured notes on CreditWatch with negative implications.

Sunac is a China-based property developer.

"The CreditWatch reflects our expectation that Sunac's cash flows and leverage could deteriorate over the next six to 12 months because of the company's proposed acquisition of about 49% of Kaisa Group Holdings Ltd. (SD/NM/--), another Chinese developer," S&P credit analyst Christopher Yip said in a news release. "We also expect integration risks from the acquisition to weaken Sunac's profitability."

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.