S&P lowers Sunshine 100

Standard & Poor’s said it lowered the long-term corporate credit rating on Sunshine 100 China Holdings Ltd. to B- from B.

The agency also said it lowered the rating on the company’s outstanding senior unsecured notes to CCC+ from B-, along with its long-term Greater China regional scale rating to cnB- from cnBB- and senior unsecured notes rating to cnCCC+ from cnB+.

The outlook is negative.

The downgrades were due to the company’s tight liquidity, heightened refinancing risk and a substantial deterioration in its leverage and interest coverage without material improvement expected, S&P said.

Sunshine’s operating cash flow also is expected to weaken in the next 12 months, the agency added.

Onshore bond market conditions are currently favorable to developers, S&P said, but it remains to be seen whether smaller developers like Sunshine will continue to have good access to meet demand in full and in a timely manner.

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