S&P shifts Languang Development view to negative

S&P said it shifted Sichuan Languang Development Co. Ltd.’s outlook to negative from stable.

“We revised the outlook to negative because we see higher risk associated with Languang's strategic shift to development projects in higher-tier cities. We believe this could cause more severe margin erosion as well as some issues for funding. Its capital structure is weakening, with an increased use of shorter-dated and more expensive alternative nonbank financing to support the strategic shift to higher tier cities,” S&P said in a press release.

Concurrently, the agency affirmed the company’s B+ long-term issuer credit rating and B long-term issue rating on its senior unsecured notes.

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