Fitch: Oceanwide unchanged on tap issue

Fitch Ratings said that Oceanwide Holdings Co. Ltd.'s (B-/stable) proposed tap of its $215 million 12% senior notes due 2021 issued by Oceanwide Holdings International Development III Co., Ltd. will not affect the B- rating and RR4 recovery rating on the bond.

The proposed tap issuance carries the same terms and conditions as the existing notes, which are rated at the same level as Oceanwide's senior unsecured rating because they constitute its direct and senior unsecured obligations, the agency said.

Oceanwide intends to use the net proceeds from the proposed tap issuance to refinance its offshore debt.

“Oceanwide's ratings are constrained by its high leverage – measured by net debt/adjusted inventory, including available-for-sale financial assets and financial institution investments - of around 75% at end-9M18,” the agency said in a news release.

“Leverage slightly improved after an asset disposal in January, but total debt remains high and we believe leverage will remain under pressure as sales are likely to stay weak without contribution from the disposed projects.”

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