S&P Global Ratings affirmed its long-term issuer credit rating of A- on Swire Pacific Ltd., with a negative outlook.

The rating decision is based on S&P's belief that the company will improve its earnings over the following one to two years. Swire Pacific is also anticipated to continue selling its noncore assets and reduce discretionary spending to support its CapEx commitments.

The negative outlook represents the agency's view that the company's financial results may not improve in the 12-month term due to its increased financial leverage and high exposure to cyclical sectors.

S&P expects the group's income from investment properties to grow "materially" in 2019 and 2020.

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.