S&P reinstates Powerlong ratings

S&P said it reinstated Powerlong Real Estate Holdings Ltd.’s B issuer rating and B- rating on its senior unsecured notes.

The reinstatement follows Powerlong publishing its audited financial statements for 2021 with an unqualified opinion from its new auditor, the agency said.

“The B rating is one notch lower than the rating before suspension. This is because we assess the developer's liquidity to be tighter, stemming from sluggish sales and higher refinancing pressure amid the dampened capital market confidence,” S&P said in a press release.

The outlook is negative, reflecting a possibility Powerlong’s liquidity could deteriorate further over the next 12 months due to weaker-than-expected cash generation from operations and declining funding access, the agency said.

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