S&P: China Merchants view negative

Standard & Poor's said it revised the outlook on China Merchants Holdings (International) Co. Ltd. to negative from stable and affirmed its BBB long-term corporate credit rating.

"The outlook revision reflects our expectations that China Merchants' credit metrics will deteriorate and could test the downward triggers set for the current rating level," S&P analyst Christopher Lee said in a statement.

Ratings are supported by the good competitive position of its ports, track record in executing its strategy and liquidity and liability management, the agency noted.

These strengths are tempered by declining throughput and tariff pressure, the company's lack of control over some affiliates that contribute significant dividends and large, though declining, capital spending over the next two years, S&P said.

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