S&P shifts Seazen view to negative

S&P said it revised its outlook for Seazen Group Ltd. and its subsidiary Seazen Holdings Co. Ltd. to negative from stable.

“We changed the outlook from stable to negative because we expect Seazen's slower contracted sales and revenue to push up its leverage toward 5x in 2022-2023.This is largely due to the company's weakening sales outlook as well as ongoing margin pressure. For the three months ended March 31, 2022, Seazen recorded contracted sales of Chinese renminbi (RMB) 31 billion–equivalent to a decrease of 37% year on year,” S&P said in a press release.

The agency said it estimates Seazen's 2022 contracted sales at RMB 163 billion-RMB 168 billion, about 30% lower than RMB234 billion in 2021.

However, the agency affirmed both companies’ BB+ issuer ratings and the BB rating on Seazen Holdings senior unsecured notes.

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