S&P: Shimao Property unchanged

Standard & Poor's said its rating on Shimao Property Holdings Ltd. (BB+/stable) was not immediately affected by regulatory approval for the company to inject assets into Shanghai Shimao Co. Ltd. in return for an ultimate controlling ownership of about 64%.

This restructuring and its impact on Shimao Property's cash flows are already factored into the rating, the agency noted.

Shimao Property intends to inject 11 of its retail and commercial projects into Shanghai Shimao, which is listed on the A-share market, the agency added, stating that the move will provide a separate platform for Shimao Property to raise financing and reduce its capital commitments for long-payback retail and commercial rental projects, while retaining control over the assets.

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