Fitch downgrades Modern Land

Fitch Ratings said it downgraded Modern Land (China) Co., Ltd.'s long-term foreign-currency and local-currency issuer default ratings to RD (Restricted Default) from C, as the company failed to repay its $250 million of outstanding senior notes that were due on Monday . There is no grace period for the bond repayment.

“The non-payment is consistent with an RD rating, signifying the uncured expiry of any applicable grace period, cure period or default forbearance period following a payment default on a material financial obligation,” Fitch said in a press release.

The non-payment triggered events of default on the company's other U.S. dollar notes, which will become immediately due and payable if the bond trustee or holders of at least 25% in total principal amount of the offshore notes declare so.

The agency, however, affirmed Modern Land's senior unsecured rating and the ratings on its U.S. dollar bonds at C with an RR6 recovery rating.

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