S&P revises Yihua Enterprise view to negative

S&P said it revised its outlook on Yihua Enterprise (Group) Co. Ltd. to negative from stable and affirmed the B long-term issuer credit rating on the company.

S&P also affirmed its B- long-term issue rating on the senior unsecured notes that Yihua guarantees. Yihua Overseas Investment Ltd. issued the notes.

Yihua primarily engages in the manufacture and distribution of furniture globally. The company’s other businesses include hospital management and elderly care services, real estate, capital management and hotel management in China.

“We revised the outlook to negative because we believe Yihua's liquidity buffer and capital structure could deteriorate if the company remains aggressive in making capital investments and the volatility in China's capital market persists,” S&P said in a news release.

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