S&P lowers Shandong Yuhuang view to negative

S&P said it revised the outlook on Shandong Yuhuang Chemical Co. Ltd. to negative from stable.

The agency also said it affirmed the company's B+ long-term issuer credit rating and the B+ long-term issue ratings on the senior unsecured notes that Shandong Yuhuang guarantees.

S&P said it revised the outlook due to Shandong Yuhuang's diminishing liquidity buffer amid tightened liquidity conditions in China.

The company's access to long-term debt funding has reduced while it has a material amount of debt due in the next 12 months, the agency explained.

Shandong Yuhuang may need to rely on short-term financing to repay these maturities, which would negatively affect its capital structure, S&P said.

The company's liquidity buffer also is expected to remain constrained, the agency added.

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