S&P downgrades Fantasia

S&P said it lowered its long-term issuer credit rating on Fantasia Holdings Group Co. Ltd. to B from B+.

The outlook is stable.

At the same time, the agency lowered the long-term issue rating on the company's outstanding senior unsecured notes to B from B+.

S&P removed all the ratings from CreditWatch where they were placed with negative implications on March 22.

“We lowered our ratings because we expect Fantasia's financial leverage to remain high over the next 12-24 months, following a material deterioration in 2017, largely due to its high growth appetite,” the agency said in a news release.

“We believe the company may face growing execution risks in expanding its operating scale and increased competition in the property management segment.”

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