S&P lowers Yuzhou view to negative

S&P said it revised the outlook on Yuzhou Properties Co. Ltd. to negative from stable.

The agency also said it affirmed the long-term issuer credit rating on Yuzhou at BB-, along with the long-term issue rating on its senior unsecured notes at B+.

Yuzhou's leverage has deteriorated significantly due to a marked acceleration in debt raising and sluggish sales booking, S&P said.

The company could face challenges in de-leveraging if revenue recognition does not pick up, the agency said.

The negative outlook reflects a view that Yuzhou's leverage may not improve to a level commensurate with the rating over the next 12 months, S&P said.

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