S&P alters Beijing Haidian view to negative

S&P said it revised the outlook for Beijing Haidian State-Owned Asset Investment Group Co. Ltd. to negative from stable and affirmed the BBB- ratings on the company and its dollar-denominated senior unsecured notes.

“We revised out outlook to negative because Haidian SAIG's liquidity remains tight, despite recent improvements, and further progress relies on future asset disposal plans. We anticipate the company will continue to rely on refinancing to meet its short-term obligations, due to insufficient operating cash flow generation and large short-term debt,” S&P said in a press release.

Short-term debt accounts for 48% of Haidan’s RMB 113 billion of total debt as of March 31. “Haidian SAIG has continued its cooperation with financial institutions to obtain long-term funding. However, the company's bond issuance has been short-term so far this year,” the agency said.

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