S&P changes Citic view to negative

S&P said it revised its rating outlook on Citic Group Corp. and Citic Ltd. to negative from stable and affirmed the A- foreign currency long-term and A-2 short-term issuer credit ratings on Citic Group and the A- long-term issuer credit rating on Citic Ltd.

In line with the outlook revision, the agency lowered its long-term Greater China regional scale ratings on both entities to cnAA- from cnAA while affirming its cnA-1 short-term Greater China regional scale rating on Citic Group.

S&P also affirmed its A- issue ratings on both entities' outstanding senior unsecured bonds and lowered the Greater China regional scale ratings on these bonds to cnAA- from cnAA.

Citic Ltd. is the operating subsidiary of Citic Group, a China-based operating holding company.

"The outlook revision on Citic Group and Citic Ltd. reflects our view that the capitalization of the group's banking business may weaken, given China's slowing economy," S&P credit analyst Stanley Chan said in a news release.

As of June 22, Citic Group subsidiary Citic Ltd. owns 64.9% of Citic Bank, which is likely to contribute about 50% of the group's revenue and 80% of its EBITDA in the coming 12 months.

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