S&P: Zhong An to negative

Standard & Poor's said it revised the outlook on Zhong An Real Estate Ltd. to negative from stable.

The agency also said it affirmed the B+ long-term corporate credit rating and lowered the Greater China scale rating to cnBB- from cnBB.

The outlook revision reflects an expectation that Zhong An's property sales are likely to remain weak in the next 12 months due to the company's small scale and high project and geographic concentration, S&P said.

The agency said it believes the deepening property sector correction in China increases the uncertainty to Zhong An's sales prospects.

Its contracted sales will continue to be materially affected by the government's policy tightening to cool the property market in China, S&P said.

If the weak sales continue, the company's credit profile, including cash flow adequacy and liquidity, could weaken materially, the agency added.

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