Fitch affirms Oceanwide

Fitch Ratings said it affirmed Oceanwide Holdings Co. Ltd.'s long-term foreign-currency issuer default rating, senior unsecured rating and the rating on its outstanding dollar senior notes at B-.

The recovery rating on its senior unsecured rating is RR4.

The outlook is stable.

The agency said the ratings are constrained by Oceanwide's high leverage, measured by net debt/adjusted inventory, including available-for-sale financial assets and financial institution investments, of around 75% at end-2018.

Fitch said it estimates that leverage will improve to 65% by end-2019, after the sale of its Shanghai and Beijing projects to Sunac China Holdings Ltd. (BB/stable) in January.

However, Oceanwide's leverage will increase thereafter due to weak sales following this projects disposal as well as a high interest burden, assuming it makes no further asset disposals, the agency added.

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