Fitch cuts Guangzhou R&F, subsidiary

Fitch Ratings said it downgraded the long-term foreign-currency issuer default ratings of Guangzhou R&F Properties Co. Ltd., and its subsidiary, R&F Properties (HK) Co. Ltd. (RFHK), to B- from B+ and its senior unsecured ratings to B- from B+ with an RR4 recovery rating.

Fitch placed the ratings on rating watch negative and removed the ratings from under criteria observation following the publication of its updated corporate rating criteria.

“The downgrade and RWN reflect Guangzhou R&F's limited funding access amid refinancing needs in the coming 12 months. We believe the company has some options to address the upcoming debt maturities, with CNY 836 billion of total saleable resources and the recent financial support by its major shareholder. The company is also in discussions for a number of asset disposals, but these are subject to execution risk and may leave the company with a limited liquidity buffer,” Fitch said in a press release.

“Guangzhou R&F is likely to repay the upcoming bond maturities using cash, which may lead to a deterioration in its business profile.”

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.