S&P lowers Parkson Retail to BB

Standard & Poor's said it lowered its long-term corporate credit rating on Parkson Retail Group Ltd. to BB from BB+.

At the same time, the agency lowered its long-term Greater China regional scale rating on the company to cnBBB- from cnBBB+.

All ratings were placed on CreditWatch with negative implications.

"We lowered the ratings because we expect Parkson's profitability to remain weak over the next 12 months at least due to the company's large number of loss-making stores and rapidly rising rents from a large portfolio of leased properties," S&P credit analyst Lillian Chiou said in a news release.

"Parkson's cash balance is also likely to drop in the next 12 months as the company looks to buy property or stores to offset the impact of rising rents."

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