(The following statement was released by the rating agency)
Jan 15 -
-- We expect Powerlong to generate satisfactory property sales and margins, and to take a more disciplined approach to investments over the next 12 months.
-- We are revising the rating outlook on the China-based real estate developer to stable from negative, and therefore raising the long-term Greater China regional scale ratings on Powerlong to ‘cnBB-’ from ‘cnB+’ and on its existing notes to ‘cnB+ from ‘cnB’.
-- We are affirming our ‘B’ long-term corporate credit rating on Powerlong and the ‘B-’ issue rating on the existing notes.
-- We are assigning our ‘B-’ issue rating and ‘cnB+’ Greater China regional scale rating to the proposed issue of senior unsecured notes.
On Jan. 15, 2013, Standard & Poor’s Ratings Services revised the rating outlook on China-based property developer Powerlong Real Estate Holdings Ltd. to stable from negative. In line with the outlook revision, we raised our long-term Greater China regional scale rating on Powerlong to ‘cnBB-’ from ‘cnB+’ and that on its outstanding senior unsecured notes to ‘cnB+ from ‘cnB’. We also affirmed our ‘B’ long-term corporate credit rating on Powerlong and the ‘B-’ issue rating on the existing notes.
At the same time, we assigned our ‘B-’ issue rating and ‘cnB+’ Greater China regional scale rating to Powerlong’s proposed issue of U.S.-dollar denominated senior unsecured notes. The company will use the proceeds from the notes for refinancing and working capital. The issue rating is subject to our review of the final issuance documentation.