Fitch slashes Guangzhou R&F, unit

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., to C from B-. The agency also slashed the senior unsecured ratings on the two companies to C from B-, but the recovery ratings remain at RR4. The ratings have been removed from rating watch negative.

“The downgrades follow Guangzhou R&F's announcement that it has launched a tender offer and consent solicitation to either reduce the price payable on the principal of its $725 million senior notes due Jan. 13, 2022, or extend the maturity of the notes,” Fitch said in a press release.

The noteholders can choose to be immediately paid $830 plus accrued interest per $1,000 of principal amount of the notes, or 50% of the principal payment will be repaid on the due date and the remaining 50% will be extended by six months to July 13.

The company also wants to shorten the notice period of optional redemption of the bond at 100% of the principal amount to seven business days, Fitch said.

The agency said the offer meets its criteria for a distressed debt exchange, which if completed, will lead to a downgrade to RD or restricted default.

© 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.