Fitch puts FWD on watch

Fitch Ratings said it placed the BBB+ issuer default rating of FWD Ltd. on rating watch evolving.

The agency said the action follows the announcement on Sept. 24 by FWD’s parent, FWD Group Holdings Ltd., that it filed a statement on registering a proposed initial public offering of American depositary shares representing class A ordinary shares of FWD Group Holdings.

After the completion of the proposed IPO, all outstanding bonds issued by subsidiary intermediate holding companies of FWD Group Holdings, as well as a bank loan entered into by FWD Group Ltd., are expected to be repaid, prepaid or novated to FWD Group Holdings.

The agency said the rating watch reflects the uncertainty over the impact of the IPO and a subsequent deleveraging plan on FWD Group Holdings' capitalization, financial leverage, debt-servicing capability, financial flexibility and operating performance.

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