S&P lowers Lonking

Standard & Poor's said it lowered the long-term corporate credit rating on Lonking Holdings Ltd. to BB- from BB, along with the rating on its $350 million senior unsecured notes to BB- from BB.

S&P also lowered the long-term Greater China credit scale ratings on Lonking and on the notes to cnBB+ from cnBBB-.

All of the ratings remain on CreditWatch, where they were placed with negative implications in June, the agency said.

S&P also lowered the ratings because the agency said it expects Lonking's already significantly weakened operating performance to likely remain weak in the next 12 months due to intense competition and a slowdown in the construction machinery industry in China.

The ratings reflect the company's smaller revenue base than that of global peers, its limited geographic and product diversity and regulatory risks from possible changes in government policies, the agency said.

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