S&P trims Shandong Ruyi Technology

S&P said it lowered its issuer credit rating on Shandong Ruyi Technology Group Co. Ltd. to CCC+ from B-. The agency also lowered the long-term issue rating on the senior unsecured notes that Ruyi guarantees to CCC from CCC+.

S&P removed the ratings from CreditWatch, where they were placed with negative implications on Sept. 19.

“We lowered the rating because Ruyi faces increasing refinancing risk for its upcoming debt maturities over the next two months and has a complex and unsustainable capital structure. Ruyi should be able to meet its upcoming maturities with the recent backing of Jining City Urban Construction Investment Co. Ltd. (JCCI), a state-owned enterprise. But we see meaningful execution risks, especially given the short time frame,” said S&P in a press release.

The outlook is negative.

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