TEXT-S&P ups Greentown China Holdings to 'B', outlook positive

Wed Dec 19, 2012 4:16am EST

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(The following statement was released by the rating agency)

Dec 19 -

Overview

-- Greentown's financial strength is likely to improve significantly in the next 12 months, mainly due to a recovery in sales, debt reduction, and a less aggressive expansion strategy.

-- We are raising our long-term corporate credit rating on Greentown to 'B' from 'CCC+' and the issue rating on the company's senior unsecured notes to 'B-' from 'CCC'.

-- We are also raising the Greater China regional scale rating on the China-based real estate developer to 'cnBB-' from 'cnCCC+' and on the notes to 'cnB+' from 'cnCCC'. We are removing all the ratings from CreditWatch with positive implications.

-- The positive outlook on the long-term corporate credit rating reflects our expectation that Greentown's financial position is likely to improve further over the next 12 months.

Rating Action

On Dec. 19, 2012, Standard & Poor's Ratings Services raised its long-term corporate credit rating on China-based real estate developer Greentown China Holdings Ltd. to 'B' from 'CCC+'. The outlook is positive. Standard & Poor's also raised its issue rating on the company's senior unsecured notes to 'B-' from 'CCC'. At the same time, we raised the long-term Greater China regional scale rating on Greentown to 'cnBB-' from 'cnCCC+' and on the notes to 'cnB+' from 'cnCCC'. We removed all the ratings from CreditWatch, where they were placed with positive implications on June 11, 2012.

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