S&P alters Datang view to negative

S&P said it changed Datang Group Holdings Ltd.’s outlook to negative from stable and affirmed its B issuer rating.

“We revised the outlook to negative because we believe Datang will face multiple operational challenges, including weakening sales prospects and margin erosion, particularly in its home market of Nanning. The company's liquidity could also take a hit due to the uncertainty over refinancing its offshore maturities amid market volatility,” the agency said in a press release.

The agency said it sees Datang’s consolidated and look-through debt to EBITDA will trend towards 8x due to margin erosion over the next 12 months

Datang’s $300 million of 12½% senior notes are due next June.

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