S&P revises Greenland Holding view to stable

S&P said it revised the outlook for Greenland Holding Group Co. Ltd. and its subsidiary Greenland Hong Kong Holdings Ltd. to stable from positive.

“The outlook revision on Greenland Holding reflects our belief the company's tighter funding access could add to capital structure challenges. Given the sizable maturities due in the second half of 2021 and 2022, the company may need to prioritize its internal cash generation for repayment, rather than repaying certain higher cost, short-term borrowings. Any refinancing through the offshore and domestic capital markets will likely be costlier and with shorter tenors,” S&P said in a press release.

Concurrently, the agency affirmed the BB long-term issuer credit rating on Greenland Holding and BB- long-term issue rating on the senior unsecured notes the company guarantees. S&P also affirmed Greenland Hong Kong’s BB- long-term issuer credit rating.

“Our rating affirmation reflects Greenland Holding's commitment to reduce debt. Through accelerating cash generation and controlling spending, the company will secure sufficient repayment sources despite tighter funding,” S&P said.

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