Fitch ends Red Star observation

Fitch Ratings said it affirmed Red Star Macalline Group Corp. Ltd.'s long-term foreign-currency issuer default rating, senior unsecured rating and the rating on its $300 million senior notes due 2022 at BB and removed the ratings from under criteria observation, on which they were placed on Dec. 1.

The agency placed the ratings on UCO following the publication of Fitch's new parent and subsidiary linkage rating criteria.

“We assess the adjusted consolidated profile of RSM's 60% parent, Red Star Macalline Holding Group Co. (RSH), at bb-, compared with b+ previously, due to its improved financial profile and lower development property (DP) contributions following major disposals in 2021. Under the new criteria, RSM follows the 'stronger subsidiary' path and is rated one notch above RSH's consolidated profile; the old criteria constrained its rating at two notches above RSH's consolidated profile. We assess RSM's stand-alone credit profile (SCP) at bb, which is supported by its large asset scale, but constrained by limited capital access,” Fitch said in a press release.

The outlook is negative.

© 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.