S&P cuts Greenland Holding

S&P said it lowered Greenland Holding Group Co. Ltd.’s ratings to B+ from BB- and the senior unsecured notes it guarantees to B from BB-. The agency also cut the company’s subsidiary Greenland Hong Kong Holdings Ltd. to B from BB-.

“Greenland's impaired access to both onshore and offshore capital markets is unlikely to improve in the short term. The company's narrower funding channel will limit its financing options, especially compared to peers that are still rated in the BB category. Despite a slight recovery in funding access after the announcement of its interim results, Greenland's bond prices have deteriorated sharply again following wider investor concerns over the sector,” S&P said in a press release.

The agency said it does not see a substantial improvement over the next 12 months even if the company keeps delivering its deleveraging targets.

The outlook is negative.

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