Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers K > Headlines for KWG Group Holdings Ltd. > News item |
S&P slices KWG Group
S&P said it lowered KWG Group Holdings Ltd.’s issuer rating CCC from B- and the rating on the dollar-denominated notes it guarantees to CCC- from CCC+. At KWG’s request, the agency withdrew the ratings. The outlook was negative.
A combination of plunging sales and employing internal resources to repay debt have further eroded KWG’s liquidity. The agency noted that from January to June, KWG’s sales contracted to RMB 26.2 billion, a year-on-year drop of 53%.
KWG has $900 million in senior notes due in September.
“We believe KWG will not have access to offshore capital markets in the near term. The company will need to rely on continuous en-bloc office selling and refinancing to tackle its substantial dollar-bond maturities. Execution delays to refinancing plans will make the company vulnerable to its shortfalls, particularly as maturities mount over the next one to two years. As of December 2021, dollar bonds and offshore syndicated loans represented around 40% of the firm's total debt,” S&P said in a press release.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.