S&P: Kerry Properties on watch

Standard & Poor’s said it placed the BBB- long-term corporate credit rating and cnA- long-term Greater China regional scale rating on Kerry Properties Ltd. on CreditWatch with negative implications.

The agency also said it placed on negative watch the BBB- and cnA- issue ratings on the company’s outstanding senior unsecured notes.

The negative watch is due to Kerry’s deteriorating leverage position following a significantly weakened financial performance in 2015, S&P said.

The company’s performance declined due to volatility in the recognition of its property development sales, high capital expenditure for land premiums and construction, the agency said, and softening conditions in the Hong Kong property market.

Kerry’s debt and capital expenditure could remain high in 2016 since its property sales and recognition are likely to be volatile over the period, S&P added.

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