S&P pulls Greenland HK from watch

S&P said it affirmed Greenland Hong Kong Holdings Ltd.’s B- issuer rating, removed it from CreditWatch with negative implications, where it had been placed on May 23 and assigned a negative outlook. The company is a subsidiary of Greenland Holding Group Co. Ltd.

“The debt extension by Greenland Holding Group Co. Ltd. (CCC-/negative/--) will not, in our view, preclude the subsidiary from raising onshore funds. Greenland HK has managed to refinance bank maturities of about Chinese renminbi (RMB) 370 million since July 2022 and is proactively seeking new financing. The company had also managed to repay in full its $150 million 364-day notes due in June 2022 and has no other bullet bonds outstanding,” the agency said in a press release.

Additionally, S&P said it is less concerned about the parent harvesting resources from Greenland HK. Greenland Holding repaid its $350 million senior notes that were due in August and secured an RMB 3 billion loan from its state-owned shareholders in the same month.

“The negative outlook reflects our expectation that Greenland HK's liquidity may further decline over the next 12 months if sales inflow remains weak or its funding access deteriorates,” the agency said.

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