S&P cuts R&F Properties (HK)

S&P said it lowered R&F Properties (HK) Co. Ltd.’s issuer rating to SD from CC following the completion of its tender offer at a discount and maturity extension for its $725 million of senior unsecured notes due Jan. 13.

“We view the transaction as distressed restructuring tantamount to a default because R&F HK has insufficient resources and limited funding options to repay the maturing notes in whole in the absence of the transaction. Also, investors are being paid less than originally promised due to the six-month maturity extension and the tender price being 17% below par for one of the offer options,” S&P said in a press release.

However, the agency affirmed Guangzhou R&F Properties Co. Ltd.’s rating at CC since it is not a guarantor of R&F HK, but provides a keepwell.

The outlook is negative.

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