S&P puts Shanghai Zendai on watch

Standard & Poor's said it placed the B+ long-term corporate credit rating on Shanghai Zendai Property Ltd. and the B+ issue rating on the company's $150 million senior unsecured notes due 2012 on CreditWatch with negative implications.

The watch follows confirmation that Shanghai Zendai has acquired a commercial property site in Shanghai for RMB 9.22 billion.

"The acquisition was substantially outside of our expectation, representing 1.2x Shanghai Zendai's consolidated total assets and 19x its consolidated cash balance as at June 30, 2009," S&P analyst Christopher Lee said in a statement.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.