S&P upgrades Guorui Properties

S&P said it raised the long-term issuer credit rating on Guorui Properties Ltd. to CCC+ from CCC, long with its senior unsecured debt to CCC from CCC-.

The outlook is negative.

All of the ratings were removed from CreditWatch, where they were placed with developing implications in February.

The negative outlook reflects the unsustainability of Guorui's capital structure, owing to its low cash to short-term debt ratio over the next 12 months, S&P said.

The agency said it believe Guorui's immediate liquidity risks have reduced after the refinancing of its two offshore bonds maturing or puttable in March 2019.

However, the company still faces significant liquidity risks due to its considerable near-term debt maturities and small cash balance, S&P said.

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