Fitch downgrades Yida China

Fitch Ratings said it downgraded Yida China Holdings Ltd.'s long-term foreign-currency issuer default rating to B- from B.

Fitch also said it downgraded its senior unsecured rating and the rating on its $300 million 6.95% senior notes due 2020 to B- from B with a recovery rating of RR4.

The outlook is stable.

The ratings were downgraded to reflect the inherent risk of the short-term debt repayment pressure Yida faces after ¥5 billion of its non-current debt was reclassified as current at year-end 2018, Fitch said.

Yida has earmarked assets for sales to cover the debt repayment, but the opportunistic nature of its liquidity management is no longer commensurate with a B rating, the agency explained.

Fitch also said it believes Yida's ratings will remain constrained by the lack of an immediate comprehensive plan to improve its debt-maturity structure, causing significant uncertainty over its business execution as it may have to dispose of assets on short notice.

© 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.