S&P slices Jinke Property

S&P said it lowered Jinke Property Group Co. Ltd.’s issuer rating to B- from B+, senior unsecured notes to CCC+ from B. The agency also put the ratings CreditWatch with negative implications and then withdrew the issuer credit and issue ratings on Jinke at the company's request.

“We believe Jinke's cash trapped in escrow accounts is higher than we had expected. This is due to rising contagion risks from joint venture (JV) partners as more of them face liquidity crunches. Access to presale proceeds in project companies will be hindered because banks and trust companies could turn cautious about letting Jinke upstream cash to the holding company level. The company's use of partnerships has exposed it to heightened counterparty risk from JV partners,” S&P said in a press release.

“Jinke faces heightened refinancing risk amid market turbulence. Despite the company's two successful domestic issuances in the past few months, recent volatility in capital markets could further dampen investor confidence,” the agency added.

The CreditWatch indicated the uncertainty over Jinke’s ability to address upcoming debt maturities in 2022, and the sustainability of its capital structure, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.