S&P lowers 21Vianet

S&P said it lowered its ratings on 21Vianet Group Inc. and its senior unsecured notes to B from B+.

In explaining the downgrade, S&P said the company’s parent TUS-Holdings Co. Ltd. is facing “substantial liquidity pressure” and is less able to help 21Vianet.

“We forecast 21Vianet's debt leverage and free operating cash outflow will increase at the early stage of its large capacity expansion and utilization ramp-up for new cabinets,” the agency said in a press release.

The outlook is stable.

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