S&P Global Ratings placed Guorui Properties Ltd.'s B- long-term issuer credit rating and CCC+ long-term issue rating on the company's outstanding senior unsecured notes on CreditWatch with negative implications.
The ratings action reflects S&P's expectation that the Chinese developer may face funding gaps from two offshore bonds totaling US$550 million that will be due in March 2019.
Although the company may carry out a successful funding plan to cover the debt maturities, S&P said it sees uncertainties around the timing and execution, adding that Guorui's financing plan "leaves little room" for any slippage.
S&P plans to resolve the CreditWatch by the end of January 2019.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.