S&P lowers Beijing Capital view to negative

Standard & Poor’s said it revised the outlook on Beijing Capital Group Co. Ltd. to negative from stable.

The agency also said it affirmed the company’s BBB long-term corporate credit rating and the BBB long-term issue rating on its outstanding guaranteed senior notes.

In line with the outlook revision, S&P also said it lowered the long-term Greater China regional scale rating and the guaranteed notes to cnA- from cnA.

The outlook revision reflects the company’s worsening financial strength, aggressive debt-funded growth expansion, potential acquisitions and declining profit margins, the agency said.

The company’s leverage is likely to remain high for the rating over the next two years after deteriorating in 2014, S&P said.

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