S&P: Li & Fung to negative

S&P said it revised the outlook on Li & Fung Ltd. to negative from stable.

The agency also said it affirmed the BBB+ long-term corporate credit rating and cnA+ long-term Greater China regional scale rating on the company.

S&P also said it affirmed the BBB+ long-term issue rating and cnA+ long-term Greater China regional scale rating on Li & Fung's outstanding senior unsecured notes.

The agency also said it affirmed the BBB- long-term issue rating and cnA- Greater China regional scale rating on the company's subordinated debt.

The outlook revision reflects an expectation that Li & Fung's trading sales and margins will continue to decline over the next 12- to 24-months as a result of increasingly challenging retail operating conditions, S&P said. The company's weak operational results over the past few years suggest deterioration in its competitiveness and capability to adjust to disruptions in the global retail industry, the agency explained.

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