S&P: San Miguel to negative

Standard & Poor's said it revised the outlook on San Miguel Corp. to negative from stable, affirmed the BB- long-term foreign-currency corporate credit rating and lowered its Asean regional-scale to axBB from axBB+.

The outlook revision and ratings reflect the opinion that San Miguel's already-aggressive financial risk profile will continue to deteriorate if its financial leverage does not improve over the next six to 12 months, the agency said. San Miguel continues to invest heavily in its diversification plans, thereby depleting its substantial cash reserves.

The negative outlook and ratings consider the opinion that San Miguel's financial leverage position may not improve over the next six to 12 months as the company is likely continue to invest in energy, infrastructure and telecom assets over the next few years, which may result in further borrowing and depletion of its substantial cash reserves, the agency added.

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