S&P lowers China Development

Standard & Poor's said it lowered its long- and short-term counterparty credit ratings on Taiwan-based China Development Industrial Bank to BBB+ and A-2 from A- and A-1, respectively. At the same time, the long- and short-term counterparty credit ratings on China Development Financial Holding Corp., which owns 100% of China Development Industrial, have been lowered to BBB and A-3 from BBB+ and A-2, respectively.

S&P said these rating actions come after the group's announcement of a revision of its 2004 profit forecast to a NT4.7 billion loss from a NT8.3 billion profit previously. The outlooks remain negative.

S&P also lowered its issue rating on China Development Financial Holding's US$310 million convertible notes due 2005 to BBB from BBB+.

"The rating actions reflect the higher-than-expected risk in the group's direct investment portfolio, which has been vulnerable to asset valuation losses," said S&P credit analyst Ryan Tsang.

© 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.