S&P puts Intime Retail on positive watch

S&P said it placed the BB- long-term corporate credit rating and cnBB+ long-term Greater China regional scale rating on Intime Retail (Group) Co. Ltd. on CreditWatch with positive implications.

The ratings were placed on positive watch to reflect potential group support to Intime from its controlling shareholder Alibaba group following the company's proposed privatization, S&P explained.

Alibaba group, through its wholly owned subsidiary Alibaba Investment Ltd., is expected to become a controlling shareholder of Intime with an expected 73.9% stake on completion of the transaction, the agency said.

Although Alibaba is already the largest shareholder of Intime with a 27.8% stake, S&P said it has not considered Intime as a member of the Alibaba group and has not factored in potential rating uplift from group support.

The group status of Intime to Alibaba will be assessed, along with the likelihood of parent support following the completion of the transaction, the agency said.

The transaction will enable Intime and Alibaba to expand further their omni-channel strategy in China and improve customer experience, S&P added.

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