S&P lowers Zhongrong Xinda

S&P said it cut the rating on Zhongrong Xinda Group Co. Ltd., citing a heightened default risk. The agency lowered the rating for Zhongrong and its dollar-denominated senior unsecured notes to CCC+ from B.

“The company’s liquidity sources are severely insufficient to meet debt obligations over the next 12 months. This is because its cash balance has been continuously drawn down to meet working capital needs and service debt,” said S&P in a news release.

The agency placed all the company’s ratings on CreditWatch with negative implications.

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