S&P trims Seazen

S&P said it lowered its ratings for Seazen Group Ltd. and its subsidiary Seazen Holdings Co. Ltd. to B+ from BB- and Seazen Holdings’ senior unsecured notes to B from B+.

“We downgraded Seazen and its subsidiary, Seazen Holdings, because persistent faltering sales will put pressure on its leverage and liquidity buffer in the next 12 months. Seazen's total contracted sales for the first eight months of 2023 fell 36.3% year on year to RMB 54.4 billion. We revised down our forecast of Seazen's 2024 sales to RMB 80 billion–RMB 85 billion, from RMB 85 billion-RMB 90 billion previously, given its high exposure to volatile property sales in lower-tier Chinese cities,” S&P said in a press release.

The agency said it sees Seazen using internal resources and new borrowings to meet its about RMB 7 billion of onshore and offshore bonds due in 2024.

The outlook is negative.

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