Originally Posted by
Xerof
Janner, Belg is inferring spin by Heartland, not S&P.....Allow me to put my spin on the statement
The rating is confirmed as close to junk, non investment grade
Their margins do not reflect the risk profile of their assets, and they are probably sitting on too much cash hoping for the banking license. In the meantime they are being killed by the negative cost of carrying all this idle liquidity
S and P are concerned with the exposure to the property development sector and would like to see them out now, take the hit and move on before the situation deteriorates further
This stock has been in a downward trend for some time and shows no reason for encouragement going forward.
The underwriters (a $100 company formed in July) must be getting nervous, as who in their right mind would tip good money after bad into what is still effectively a finance company with ambitions that look more distant by the day.