Fitch lowers Zhongrong Xinda

Fitch Ratings said it downgraded Zhongrong Xinda Group Co., Ltd.'s long-term foreign-currency issuer default rating to B- from BB-.

The agency also downgraded the company's senior unsecured rating to B- from BB- with a recovery rating of RR4.

All ratings were placed on rating watch negative.

Fitch said the downgrade and rating watch reflect the company's constrained liquidity and uncertainty over its ability to meet debt maturities over the next 12 months.

The company has RMB 2.7 billion in readily available cash and it could potentially rely on available bank facilities of RMB 4.7 billion, the agency said.

However, Fitch said the recent sharp fall in Zhongrong Xinda's bond prices and weak market sentiment are likely to make refinancing negotiations more difficult than previously expected when Fitch last downgraded the company.

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