S&P: Oceanwide exchange not distressed

S&P said it affirmed the CCC+ long-term issuer credit rating on Oceanwide Holdings Co. Ltd. and the CCC long-term issue rating on the company's outstanding senior unsecured notes.

The agency said it expects Oceanwide to conduct a partial exchange of the company's outstanding senior unsecured notes due May 2019, with a concurrent new issuance in order to manage its offshore debt profile.

S&P said it believes the transaction is not a distressed exchange and its successful execution could have meaningful impact on the company's liquidity status and credit profile.

The negative outlook on the issuer credit rating reflects the company's continued strained liquidity, potential uncertainty on its refinancing execution and still significant debt repayment pressure, the agency said.

If successfully executed, the transaction will meaningfully help Oceanwide to address near-term liquidity pressure and allow it to further reduce onshore debt over the next 12 months, S&P said.

On the other hand, if market interest is weak, then the transaction will have negative implications on the company's market standing, the agency said.

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