S&P rates Shimao notes BB-

Standard & Poor's said it revised the outlook on Shimao Property Holdings Ltd. to negative from stable.

The agency also said it affirmed its BB long-term corporate credit rating and BB- rating on its outstanding notes.

The agency also assigned a BB- rating to Shimao's proposed issue of dollar-dollar fixed-rate senior unsecured notes.

S&P said it revised the outlook because of uncertainty about whether the company can maintain credit ratios that are supportive of the current rating.

Shimao's key metrics and financial flexibility could weaken given its aggressive debt issuance and expansion, the agency said.

The company has limited margin at this rating level to weather any deterioration in property sales or profitability, due to its increased borrowings and the reduced headroom in its debt covenants, S&P said.

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