S&P: Evergrande negative

Standard & Poor's said it revised the outlook on Evergrande Real Estate Group Ltd. to negative from stable and affirmed the BB long-term corporate credit rating on Evergrande and the BB- issue rating on the company's outstanding senior unsecured notes.

As a result of the outlook revision, S&P also lowered its Greater China credit scale rating on Evergrande to cnBB+ from cnBBB- and that on the notes to cnBB from cnBB+.

"We revised the outlook to reflect our view that Evergrande may face a tougher refinancing environment following allegations of frauds by a U.S.-based investment research company," said S&P credit analyst Christopher Lee in a news release. "In our opinion, Evergrande's corporate governance assessment could deteriorate if the company continues to materially invest in non-core businesses and pursues a high-growth strategy."

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