S&P revises Wuhan view to negative

S&P said it revised its rating outlook on Wuhan Real Estate Development & Investment Group Co. Ltd. to negative from stable.

“We revised the outlook on Wuhan Real Estate because we expect the Wuhan government’s weakening credit quality to have a knock-on impact on the company,” said S&P in a news release.

“We expect the city to have large after-capital-account deficits until 2021. We also believe Wuhan’s debt burden will remain very high over the next one to two years and be a key constraint for its creditworthiness,” the agency said.

S&P also affirmed its BBB- long-term issuer credit rating on the company and the BBB- long-term issue rating on the company’s senior notes.

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