Fitch puts Guorui on negative watch

Fitch Ratings said it placed Guorui Properties Ltd.'s long-term foreign-currency issuer default rating of B-, and its senior unsecured rating and the ratings on its outstanding notes of B- with recovery ratings of RR4 on rating watch negative.

“The RWN reflects the uncertainty over the refinancing arrangements for the China-based homebuilder's $455 million (CNY 3 billion) senior notes due February 2022, which are puttable in February 2021. Guorui told Fitch it is in discussions with existing bondholders and has a refinancing plan in place, which Fitch considers feasible but execution risks remain,” the agency said in a press release.

The agency said it aims to resolve the RWN on the successful refinancing of the senior notes before the puttable date in February.

“Failure to refinance the offshore debt will lead to a multiple-notch downgrade of Guorui's ratings. The ratings may be affirmed at B- if Guorui refinances the offshore debt and it demonstrates improvement in its debt-maturity profile and liquidity management,” Fitch said.

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