SOHO China Ltd. #BB# Rating Rating Then Withdrawn At The Company#s Request

Stocks and Financial Services Press Releases Monday March 20, 2017 17:41
HONG KONG--20 Mar--S&P Global Ratings

HONG KONG (S&P Global Ratings) March 20, 2017--S&P Global Ratings today affirmed its 'BB' long-term corporate credit rating on China-based SOHO China Ltd. with a negative outlook. We also affirmed the 'cnBB+' long-term Greater China regional scale rating on the company. We subsequently withdrew all the ratings at SOHO's request.

The affirmed ratings at the time of the withdrawal reflected SOHO's execution risk associated with a shift in the business model, high leverage, and weak financial strength. These risks are balanced by the company's good financial flexibility, high cash level, and good asset quality in Beijing and Shanghai. We estimate SOHO's leverage, as measured by a ratio of debt to EBITDA, to have been 18x-22x in 2016, compared with 24.5x in 2015.

At the time of the withdrawal, the negative outlook reflected our view that SOHO's financial leverage will remain high within the next six months, given the company's ongoing capital expenditure to bolster its investment portfolio. The rating would have remained under pressure unless the company were to reduce its sizable debt burden. We could have lowered the rating to 'BB-' if the company did not realize capital recycling, such as asset sales, that would enable it to reduce debt and improve leverage


Latest Press Release

Johnson Johnson Completes Acquisition of Ci:z Holdings Co., Ltd.

Johnson & Johnson (NYSE:JNJ) today announced the completion of the acquisition of Ci:z Holdings Co., Ltd. (TYO: 4924) (the "Company") for a total purchase price of approximately JPY / CNY230 billion. The acquisition was completed through a series of...

Siam Commercial Bank Partners with Chaixi Bameekiao and Visa To facilitate QR payment for noodle franchise

- Ms. Pimjai Tongmee, SCB's Payment Product Sales and Delivery Division Executive Vice President - Mr. Panrob Kamla, President of Chaixi Bameekiao Co. Ltd - Mr. Suripong Tantiyanon, Country Manager for Visa Thailand "Siam Commercial Bank" (SCB)...

Isotropic Systems Raises $14 Million in Series A Funding Led by Boeing HorizonX Ventures to Advance Space-Based Connectivity

- Isotropic's approach to next-generation integrated terminal creates profound change in terminal economics and performance to unlock the satellite industry's full potential Isotropic Systems Ltd., the next-generation integrated satellite terminal...

Global economic growth expected to slow in 2019

The global economy as a whole is expected to slow in 2019 as G7 countries return to long-run average growth rates, according to new projections from PwC in its latest Global Economy Watch. PwC expects that the pick up in growth of most major economies...

QNB Group: Financial Results for the Year Ended 31 December 2018

QNB, the largest financial institution in the Middle East and Africa (MEA) region, announced its results for the year ended 31 December 2018. (Photo: https://mma.prnewswire.com/media/808498/QNB_Group_Head_Office.jpg ) Net Profit for the year ended 31...

Related Topics