Fitch slices Yango Group

Fitch Ratings said it sliced Yango Group Co., Ltd.'s long-term foreign-currency issuer default rating and senior unsecured rating to B- from B+. The agency maintained the recovery rating at RR4. Fitch also removed all the ratings from under criteria observation, where they were placed on Oct. 20.

“The downgrade reflects Yango's weakened access to funding, increasing liquidity pressure due to large short-term capital-market instrument maturities and diminishing financial flexibility to keep a stable business profile,” Fitch said in a press release.

The agency noted that since the end of September, Yango’s bonds due 2022-2023 are trading at distressed levels. “We believe Yango has sufficient funds to repay $240 million in puttable bonds in November. However, it may face significant liquidity pressure if it is unable to access the capital market for an extended period.”

The outlook is negative.

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