S&P cuts Franshion to junk

Standard & Poor's said it lowered its long-term corporate credit rating on Franshion Properties (China) Ltd. to BB+ from BBB-. The outlook is stable.

At the same time, the agency said it lowered the issue rating on the company's senior unsecured notes to BB from BB+. The agency also lowered the Greater China credit scale ratings on Franshion to cnBBB+ from cnA- and on the company's senior unsecured notes to cnBBB from cnBBB+.

All the ratings were removed from CreditWatch, where they were placed with negative implications on Nov. 2, S&P said.

"We lowered the rating on Franshion because we believe the ability of the company's parent, Sinochem Hong Kong (Group) Co. Ltd., to support the subsidiary has reduced," said S&P credit analyst Frank Lu in a news release.

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