S&P affirms Road King

Standard & Poor's said it affirmed the BB- long-term corporate credit rating on Road King Infrastructure Ltd. and BB- rating on its outstanding guaranteed senior notes.

The outlook is negative.

"We affirmed the rating to reflect Road King's stable cash flows from toll roads and healthier property sales over the next six to 12 months," S&P analyst Steffi Chen said in a statement.

"We expect these factors to improve the company's cash flows and support its debt servicing and other obligations."

The rating on Road King reflects the company's volatile performance due to its exposure to the cyclical and highly competitive property market in China, its weaker profitability than similarly rated developer peers and its financial risk profile, S&P said.

Road King's stable operating performance and the sizable cash flows from its toll road operations, its disciplined debt-funded investments and proactive financial management, and improving liquidity position temper the weaknesses, the agency noted.

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