S&P affirms Sino-Forest

Standard & Poor's said it affirmed its BB- corporate credit rating on Sino-Forest Corp. The outlook is stable.

The agency said the rating reflects the company's land bank of plantation assets, adequate liquidity and favorable market position, with demand for wood products exceeding domestic supply.

These strengths are offset by recent delays and higher than expected costs associated with an acquisition of 200,000 hectares of forest in Heyuan in Guangdong province, S&P noted, adding other concerns include Sino-Forest's aggressive acquisition program, the cyclical nature of the forestry industry and regulatory risk in China.

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