S&P downgrades Maoye

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

The agency also said it lowered the long-term issue rating on the company's senior unsecured notes to CCC+ from B-.

S&P also said it lowered the long-term Greater China regional scale rating on the company to cnB from cnB+ and on the notes to cnB- from cnB.

S&P also said it placed all of the ratings on CreditWatch with negative implications.

The agency said it lowered the rating and placed it on CreditWatch to reflect Maoye's heightened refinancing risk, given the lack of improvement in its liquidity position.

The scale of the company's potential asset disposals is uncertain, the agency said, and any improvement in liquidity will largely depend on issuance of domestic bonds or notes.

Maoye's liquidity remains burdened by weakening revenues from its department-store operations and property sales, which are unlikely to improve materially in the next 12 months, S&P said.

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