Fitch assigns B-/RR5 to Yango notes

Fitch Ratings said it assigned Yango Group Co., Ltd. (B/positive) a B-/RR5 senior unsecured rating and a B-(EXP)/RR5 rating to its proposed dollar-denominated senior notes.

“The one-notch difference between Yango's senior unsecured rating and its long-term issuer default rating reflects the subordination of its unsecured debt to secured debt,” Fitch said in a news release.

“Secured debt accounted for around 70% of Yango's total borrowing as of end-September 2017, and made up more than 80% of Fitch-estimated liquidation value.”

The proposed notes are rated at the same level as Yango's senior unsecured rating because they constitute its direct and senior unsecured obligations.

Net proceeds will mainly be used to refinance existing debt.

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