S&P lowers Renhe Commercial

Standard & Poor's said it lowered the long-term corporate credit rating on Renhe Commercial Holdings Co. Ltd. to B+ from BB-.

The outlook is negative.

The agency also said it lowered the rating on the company's senior unsecured notes to B+ from BB-, along with its Greater China credit scale rating on Renhe and its senior unsecured notes to cnBB- from cnBB+.

The ratings were removed from CreditWatch, where they were placed with negative implications in December.

The downgrades reflect an expectation that Renhe's liquidity is likely to weaken in the next year due to the company's slowing property sales, materially longer collection period for sales proceeds and high receivable counterparty risk, S&P said.

Renhe's property sales are likely to remain weak in 2012 due to subdued demand for property investment in China, the agency said.

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