Delays in the two firms raising cash from assets and from unwinding related-party transactions has led to higher-than-expected earnings volatility and strained balance sheets, S&P said. “GLP is unlikely to meet its target of completing the monetisation of a substantial portion of logistics assets in China” by year’s end, it added.
GLP Pte was stripped of its last investment-grade rating by S&P Global Ratings due to deteriorating liquidity and asset-monetisation delays at one of Asia’s biggest logistics firms.
S&P cut GLP and unit GLP China Holdings Ltd. by two notches to BB, the ratings firm said in a statement on Nov 2. Its grades were then withdrawn at the group’s request, according to S&P. Fitch Ratings dropped GLP to junk territory last month.
