S&P cuts Red Star Macalline

S&P said it downgraded Red Star Macalline Group Corp. Ltd.'s rating to B+ from BB and its guaranteed senior unsecured notes to B from BB+.

“We downgraded Red Star to reflect rising liquidity risk for parent Red Star Macalline Holding Group Co. Ltd. (RSH). The parent has concentrated debt maturities over the next two years. We continue to assess Red Star as a core subsidiary of RSH, and the rating on Red Star is capped at RSH's group credit profile of b+,” S&P said in a press release.

The agency also said it does not see Red Star's weaker leverage recovering over the next two years.

The outlook is negative.

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