Fitch downgrades Yancheng Oriental

Fitch Ratings said it downgraded Yancheng Oriental Investment & Development Group Co., Ltd.'s long-term foreign- and local-currency issuer default ratings to BB- from BB.

The outlook is stable.

The ratings on the $300 million 5.15% senior unsecured notes due 2019, which were issued by Yancheng Oriental's wholly owned subsidiary, Oriental Capital Co. Ltd., also were downgraded to BB- from BB.

The downgrades follow an internal assessment of the creditworthiness of Yancheng municipality, Fitch explained.

The linkage between Yancheng Oriental and the sponsor is unchanged.

The bonds were downgraded in line with Yancheng Oriental's issuer default rating, the agency said.

Fitch said it classified Yancheng Oriental as a government-related entity, reflecting the government's ownership and control and the company's policy role in the urban development of the Yancheng Economic-Technological Development Zone.

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