Fitch cuts Hong Yan, pulls ratings

Fitch Ratings said it downgraded the long-term foreign-currency issuer default ratings on Hong Yang Group Co. Ltd. and its subsidiary Redsun Properties Group Ltd. to C from CC and downgraded their senior unsecured ratings to C from CC with the recovery rating remaining at RR4. The agency subsequently withdrew all the ratings.

The downgrades follow Redsun's Thursday announcement it failed to pay the interest on its $350 million of notes due 2025. The 30-day grace period for the payment expires Aug. 12, Fitch said.

“The downgrade of parent Hong Yang's IDR reflects the existence of a cross-default clause with Redsun in the indenture for its U.S. dollar bonds,” the agency said in a press release.

Neither company has provided any information beyond their public announcements, Fitch added.

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