Fitch upgrades Guangzhou R&F

Fitch Ratings said it raised the long-term foreign-currency issuer default rating Guangzhou R&F Properties Co. Ltd. and its subsidiary, R&F Properties (HK) Co. Ltd. to CC from RD due to a reassessment of the company's profile after the completion of an exchange offer.

The agency also boosted Guangzhou R&F's and RFHK's senior unsecured ratings to CC from C with an RR4 recovery rating.

“The upgrade reflects Guangzhou R&F's improved capital structure after the exchange on Jan. 13, 2022, which extended the bond repayment by six months. However, Fitch believes it continues to face liquidity challenges as a large amount of short-term debt is maturing in 2022, while its access to funding could remain limited. The company is planning asset sales to refinance the upcoming maturities, but we believe there is high execution risk due to the challenging macroeconomic environment,” the agency said in a press release.

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