S&P revises Sunac China view to negative

S&P said it revised its outlook on Sunac China Holdings Ltd. to negative from stable and affirmed the B+ long-term corporate credit rating and the B long-term issue rating on its outstanding senior unsecured notes.

Following the outlook revision, the agency lowered Sunac’s long-term Greater China regional scale rating to cnBB- from cnBB and the rating on the notes to cnB+ from cnBB-.

"We revised the outlook to negative because Sunac's financial leverage is likely to deteriorate in 2016 owing to the company's aggressive land acquisitions so far this year," S&P credit analyst Dennis Lee said in a news release.

This is despite the agency’s expectation that Sunac's contracted sales will grow 61% to RMB 110 billion.

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