S&P cuts Greenland Holding, notes to BB

Standard & Poor's said it lowered its long-term corporate credit rating on Greenland Holding Group Co. Ltd. to BB from BBB- and its long-term Greater China regional scale rating to cnBB+ from cnBBB+.

The outlook is negative.

The agency also downgraded. its long-term issue rating on the group's guaranteed senior notes to BB from BBB- and its Greater China regional scale rating on the notes to cnBB+ from cnBBB+.

"We downgraded Greenland Group because the company's financial position deteriorated sharply in 2015, with a substantial increase in borrowings for its property development business and other business segments more than offsetting the benefit of deconsolidation of its energy trading arm, Yunfeng," S&P credit analyst Matthew Kong said in a news release.

"We expect Greenland Group's leverage and debt-servicing capacity to remain weak over the next 12 months."

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