Fitch downgrades Wens

Fitch Ratings said it downgraded Wens Foodstuff Group Co., Ltd.'s long-term foreign-currency issuer default rating to BBB- from BBB+. Fitch also trimmed the senior unsecured rating and the ratings of its U.S. dollar notes to BBB- from BBB+.

“The downgrade reflects Wens's smaller scale, weaker operational efficiency, and the expectation of higher sustained leverage. Wens is in the midst of operational and volume recovery from the African Swine Fever (ASF) impact in 2020, but this has coincided with a sharp drop in hog prices in 1H21 which weighs on its profile,” Fitch said in a press release.

The outlook is stable.

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