S&P cuts Winsway, notes to B+

Standard & Poor's said it lowered its long-term corporate credit rating on Winsway Coking Coal Holdings Ltd. to B+ from BB-. The outlook on the rating is stable.

The agency said it also lowered the issue rating on the company's outstanding senior unsecured notes to B+ from BB-. At the same time, the agency said it lowered its Greater China scale credit ratings on Winsway and the notes to cnBB from cnBB+.

The agency said it also removed all the ratings from CreditWatch, where they had been placed with negative implications on Nov. 2.

S&P said it lowered the rating on Winsway because it expects the company's business risk profile to weaken after it completes the acquisition of Canadian coal miner Grand Cache Corp. Following the acquisition, Winsway's profitability is likely to become more volatile due to fluctuating coking coal prices and risks associated with coal mining operations, the agency said.

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