S&P lowers Li & Fung outlook to negative

Standard & Poor's said it revised its outlook on the rating on Li & Fung Ltd. to negative from stable.

At the same time, it affirmed the A- long-term corporate credit rating.

S&P noted that the revised outlook reflects increased financial risk at Li & Fung as the company moves away from its historical position as a net creditor.

Higher financial risk brings into question management's commitment to maintaining a conservative financial profile while expanding its business, the agency said, adding that the rating reflects the exporter's strong and growing position in the apparel sourcing business and good cash flow generation.

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