S&P drops Hopson to negative

Standard & Poor's said it revised the outlook on Hopson Development Holdings Ltd. to negative from stable.

The agency also said it lowered the Greater China credit scale rating on Hopson to cnBB- from cnBB and the notes to cnB+ from cnBB-.

The agency also affirmed its B+ long-term corporate credit rating and B issue rating on the company's outstanding senior unsecured notes.

The outlook revision reflects a view that Hopson's liquidity and financial strength are likely to further weaken in 2011 and 2012, S&P said.

The company's aggressive debt-funded expansion, weak sales execution record and ongoing corporate governance are among the key credit risks, the agency said.

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