S&P lowers Dr. Peng

S&P said it lowered the long-term issuer credit rating on Dr. Peng to B- from B, along with the issue rating on the company's guaranteed senior unsecured debt to B- from B.

Dr. Peng faces significant debt maturities in mid-2020, but has made limited progress in refinancing, the agency said.

Expansion in network maintenance services and internet data centers (IDC) could add to the pressure on liquidity amid reduced operating cash flow and large capital expenditure, S&P said.

The agency said it lowered the rating based on Dr. Peng's rising liquidity pressure, the agency said.

The company has significant debt maturities in the first half of 2020, but has made limited progress in refinancing, S&P said.

The negative outlook reflects a view that the company's liquidity could further decline without meaningful progress in refinancing, the agency said.

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