S&P cuts Zhongliang

S&P said it lowered Zhongliang Holdings Group Co. Ltd.’s issuer rating to B from B+.

“We lowered the rating on Zhongliang to reflect higher liquidity pressure on the company during the next six months. After the developer remitted funds to repay $250 million of senior notes due in January, it still has offshore maturities of about $1 billion in 2022, concentrated in the second and third quarters. Zhongliang relies on internal cash flow to settle the maturities. Weaker homebuyer sentiment will likely hurt the company's sales, reducing its liquidity buffer,” the agency said in a press release.

However, S&P noted the company’s land reserves should temper risks.

The outlook is negative.

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