Fitch downgrades Yida

Fitch Ratings said it downgraded Yida China Holdings Ltd.'s long-term issuer default rating to C from CCC. At the same time, Fitch downgraded the company's senior unsecured rating and the rating on its $300 million of senior notes due in April to C from CCC with a recovery rating of RR4.

The downgrades follow Yida's announced launch of a tender to exchange its notes due 2020 for new senior notes due 2022, which Fitch considers a distressed debt exchange as per its DDE criteria.

Yida is offering $80 cash and $920 in new notes due 2022 for each $1,000 principal amount of the notes due in April. This constitutes a material reduction in the terms of the existing notes, as the bulk of repayment is being made in the form of new notes instead of cash.

“We will downgrade the IDR to RD if the proposed tender offer is completed and re-rate Yida's IDR to a level that is consistent with its post-exchange capital structure and risk profile; this would likely be in the low speculative rating range,” Fitch said in a press release.

© 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.