S&P removes Seazen from watch

S&P said it affirmed its BB long-term issuer credit rating on Seazen Group Ltd. and BB- long-term issue rating on the company’s outstanding offshore senior unsecured notes and removed the ratings from CreditWatch, where they were placed with negative implications on July 5.

“We affirmed the rating on Seazen Group with a stable outlook because we believe the company has managed the negative repercussions from the detention of its now ex-chairman in July. We also expect the impact of the incident to continue to subside and the company to maintain its steady sales performance into 2020,” the agency said in a press release.

Steady sales helped the company endure the initial credit crunch following the then chairman’s detention in July. The company reached RMB 124 billion in contracted sales over July-November. This became its primary source of cash inflow to support construction spending and debt repayment in the absence of new debt financing during that period. Seazen Group will likely meet its annual sales target of RMB 270 billion, given sales of RMB 246 billion in the first 11 months of the year, S&P said.

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