S&P: Kaisa on negative watch

Standard & Poor’s said it placed the BB- long-term corporate credit rating and cnBB+ long-term Greater China regional scale rating on Kaisa Property Holdings Ltd. on CreditWatch with negative implications.

S&P also said it placed the BB- long-term issue rating and cnBB+ long-term Greater China regional scale rating on the company’s outstanding senior unsecured notes on CreditWatch with negative implications.

The agency said it placed the ratings on CreditWatch with negative implications to reflect risks that Kaisa’s sales prospects and financing capabilities could weaken in 2015 following government restrictions on the company’s sales in Shenzhen.

There is still no visibility on when the Shenzhen local government will lift its restrictions on Kaisa’s sales in several projects in the city. The reasons behind the restrictions also remain unclear, S&P said.

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