Fitch cuts China South City

Fitch Ratings said it lowered China South City Holdings Ltd.’s issuer and senior unsecured ratings to B- from B. The recovery rating remains RR4. Fitch also removed the ratings from under criteria observation following the publication of its updated corporate rating criteria.

“The downgrade reflects CSC's weakened funding access against significant obligations maturing in the coming 12-18 months. We believe the company has some options to address the upcoming maturities via onshore secured borrowings based on its investment-property portfolio and asset disposals, but the reliance on the successful execution of these plans has increased. CSC is likely to repay the upcoming bond maturities using cash, which may lead to a deterioration in its business profile,” Fitch said in a press release.

The outlook is negative.

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