S&P cuts Yihua Enterprise

S&P said it downgraded Yihua Enterprise (Group) Co. Ltd. to CCC from B- and its debt rating to CCC- from CCC+.

The agency downgraded Yihua because the company faces execution risks and a tight refinancing timeline for maturities of about RMB 3.4 billion due over the next six months, it said.

Yihua does a refinancing plan, but there’s a tight timeline and high executive risk, S&P said.

Two court actions against the company have hurt Yihua’s domestic bond prices and likely hurt its reputation in the capital markets and access to new bank loans, S&P said.

The outlook is negative.

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