S&P lowers Famous Commercial

Standard & Poor’s said it lowered the long-term corporate credit rating on Famous Commercial Ltd. to BB- from BB, along with the rating on its outstanding guaranteed senior unsecured notes to B+ from BB-.

S&P also said it lowered the long-term Greater China regional scale ratings on the company to cnBB+ from cnBBB- and the notes to cnBB from cnBB+.

The outlook is stable.

The downgrades reflect a similar downgrade on Gemdale Corp. following the parent’s increasing leverage and weak sales, the agency said.

Famous’ ratings are linked to the ratings on Gemdale as Famous is considered a highly strategic subsidiary, S&P said.

The two companies have highly integrated operations and financial management, the agency added.

The weakening of Gemdale’s financial profile will have a direct impact on Famous’ credit profile given the subsidiary’s limited record of operations and reliance on parent support, S&P said.

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