S&P cuts Yida China

S&P said it lowered its long-term issuer credit rating on Yida China Holdings Ltd. to CCC from CCC+ and lowered the long-term issue rating on the company's senior unsecured notes to CCC- from CCC.

The outlook is negative.

“We downgraded Yida China Holdings Ltd. (Yida) on higher refinancing risk following a significant increase in its current borrowings,” S&P said in a news release.

“About Chinese renminbi (RMB) 5 billion of the company's non-current bank loans and corporate bonds have been reclassified as immediately repayable on demand, triggered by asset-freeze orders on China Minsheng Investment Corp. Ltd. (CMIG)'s equity interests in some subsidiaries. CMIG is Yida's largest shareholder and we consider CMIG as Yida's financial sponsor.”

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