S&P places Hoang Anh Gia Lai on watch

Standard & Poor's said it placed the B long-term corporate credit rating and axBB- Asean scale rating on Hoang Anh Gia Lai JSC on CreditWatch with negative implications, along with the B rating on its $90 million senior notes due 2016.

The CreditWatch is due to the anticipated deterioration in the company's credit profile over the next six to 12 months, S&P said.

The performances of the company's core property development and iron ore mining businesses are likely to be significantly weaker than expected, the agency said.

This is attributable to the difficult operating environment in Vietnam, which includes persistently high interest rates and inflation, culminating in property buyers' reduced purchasing power, S&P said.

© 2015 Prospect News.
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