S&P lowers Greentown China

Standard & Poor's said it lowered the long-term corporate credit rating on Greentown China Holdings Ltd. to B+ from BB- and its RMB 2.3 billion convertible bond due 2012 and $400 million senior unsecured notes due 2013 to B from B+. Ratings were placed on CreditWatch with negative implications.

The watch follows the company's tender offer to repurchase its $400 million unsecured notes and the disclosure of bond covenant breaches, the agency noted.

"The CreditWatch reflects our uncertainty over whether the breaches could trigger an acceleration of other debt obligations," S&P analyst Christopher Lee said in a statement.

Ratings reflect uncertainty over Greentown's liquidity position, weakened flexibility and the uncertain state of the company's financial positions following the recent restructuring of its assets and financing through trust loans, the agency said.

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