S&P lowers SPG Land, notes

Standard & Poor's said it lowered its long-term corporate credit rating on SPG Land Holdings Ltd. to B from B+. The outlook is negative.

The agency said it also lowered the issue rating on the company's senior unsecured notes to B- from B. At the same time, the agency said it lowered its Greater China credit scale ratings on SPG Land to cnB+ from cnBB, and on the notes to cnB from cnBB-.

The agency also removed all the ratings from CreditWatch, where they had been placed with negative implications on Aug. 31.

"We downgraded SPG Land because we expect the company's cash flows to remain weak and its capital structure to deteriorate over the next 12 months due to its poor execution of property sales and a deepening market correction," said S&P credit analyst Frank Lu in a news release. "We also believe the risk of SPG Land breaching its loan covenant is high for the next six to 12 months due to very limited covenant headroom and weak sales."

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