S&P changes Golden Eagle to negative

Standard & Poor's said it revised its outlook on Golden Eagle Retail Group Ltd. to negative from stable.

At the same time, the agency affirmed its BBB- long-term corporate credit rating on Golden Eagle and its BBB- long-term issue rating on the company's senior unsecured notes.

In line with the outlook revision, S&P lowered its long-term Greater China regional scale rating on Golden Eagle and its notes to cnBBB+ from cnA-.

"We revised the outlook because we believe Golden Eagle's leverage could increase significantly in 2015 and 2016 and breach our downgrade trigger if the company completes the proposed acquisition of a property development project and the property sales from the project do not materialize," S&P credit analyst Lillian Chiou said in a news release.

The agency said it has limited information on the timing and amount of the cash flows and revenues from the property sales.

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