S&P lowers Hopson, notes

Standard & Poor's said it lowered its long-term corporate credit rating on Hopson Development Holdings Ltd. to B- from B. The agency said it also lowered its issue rating on the company's senior unsecured notes to CCC+ from B-.

At the same time, the agency said it lowered the Greater China credit scale rating on Hopson to cnB from cnBB- and on the notes to cnB- from cnB+.

The agency said it kept the ratings on Hopson and the notes on CreditWatch, where they were placed with negative implications on April 3.

"The downgrade reflects our expectation that Hopson's liquidity will remain weak for the next 12 months due to the company's significant short-term debt, substantial construction costs and worsening property sales," said S&P credit analyst Bei Fu in a news release.

"We anticipate that Hopson's capital structure and cash flows will deteriorate to levels we consider weak for a B rating.

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