S&P downgrades Maoye

Standard & Poor’s said it lowered the long-term corporate credit rating on Maoye International Holdings Ltd. to BB- from BB.

The agency also said it lowered the long-term issue rating on the company’s senior unsecured notes to B+ from BB-, along with its long-term Greater China regional scale rating on the company to cnBB from cnBB+ and on the notes to cnBB- from cnBB.

The outlook is negative.

The downgrades are due to an expectation that Maoye will face higher refinancing risks in the next 12 months, S&P said.

The outlook is negative, reflecting that the company’s credit risk profile could continue to deteriorate over the next 12 months given the company’s increasing refinancing risk and weaker capital structure due to its significant short-term debt maturities and aggressive expansion appetite, the agency said.

The company’s EBITDA interest coverage remains at more than 2.5x for the first half of 2015, S&P said.

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