S&P lowers Guorui Properties

S&P said it lowered its long-term issuer credit rating on Guorui Properties Ltd. to B- from B.

The outlook is negative.

At the same time, the agency lowered the long-term issue rating on the company's senior unsecured notes to CCC+ from B-.

“We lowered the ratings on Guorui to reflect the company's high debt leverage, which is worse than our expectation and will unlikely improve significantly in the next 12 months,” S&P said in a news release.

“The company also has weak liquidity and heightened refinancing risks. We believe Guorui's low cash balance renders it vulnerable to market volatility and to changes in government policy.”

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