Fitch shifts Sino-Ocean view to negative

Fitch Ratings said it revised the outlook for Sino-Ocean Group Holding Ltd. to negative from stable and affirmed the company's long-term foreign-currency issuer default rating at BBB-.

All the ratings have been removed from under criteria observation, on which they were placed on Oct. 20.

“The negative outlook reflects our expectation the company's leverage - measured by net debt/net development-property assets - could remain above 40%, its negative sensitivity for an extended period,” Fitch said in a press release.

However, Fitch noted Sino-Ocean repeated its commitment to containing gross debt and expects deleveraging to continue. “However, the leverage trajectory could be affected by the severity and length of the Chinese property sector's slowdown, which is reflected in the negative outlook.”

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