S&P lowers Tahoe Group

S&P said it lowered the long-term issuer credit rating on Tahoe Group Co. Ltd. to B- from B.

The agency also said it lowered the long-term issue rating on the company's senior unsecured notes to CCC+ from B-.

The outlook is stable.

S&P said it lowered the rating on Tahoe because the company's leverage is significantly higher than expectation, stemming from weak cash collection and an aggressive expansion appetite, leading to unsustainable dependency on debt financing.

The agency also said it believes the company's liquidity position is tight and it faces high refinancing risk given high short-term debt and a high proportion of alternative financing in its debt mix.

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