[BEIJING] Standard & Poor's Ratings Services said today that it had discontinued its 'D' long-term corporate credit rating and Greater China regional scale rating on Kaisa Group Holdings Ltd. S&P also discontinued its 'D' long-term issue rating and Greater China regional scale rating on the China-based company's outstanding senior unsecured notes.
S&P discontinued the ratings because sufficient and timely information was not available for us to assess Kaisa's credit quality.
In their view, Kaisa is unlikely to restore normal operations in the near term. The company is still in negotiations with onshore and offshore creditors on possible debt restructurings without any notable progress after several months. Also, Kaisa's various projects and assets continue to be frozen by court orders and will likely need to go through time-consuming legal processes to resolve. Moreover, it would be very difficult for Kaisa to regain the confidence of its customers and business partners after the default. The company missed the interest payments on two of its senior notes in March 2015, following which Standard & Poor's lowered all the ratings on Kaisa and its outstanding notes to 'D'.