Fitch cuts Zhongyuan AMC, notes

Fitch Ratings said it downgraded Zhongyuan Asset Management Co., Ltd.’s long-term foreign- and local-currency issuer default ratings to BBB- from BBB.

The outlook is negative.

Fitch has also downgraded Zhongyuan AMC's $400 million 4.2% senior notes due 2022 to BBB- from BBB.

“The downgrade follows Fitch lowering its assessment of Zhongyuan AMC's financial implications of default to 'Moderate' from 'Strong' as Zhongyuan AMC's debt has decreased as a portion of the provincial government's major government-related entities' (GRE) debt and because of the lower outstanding balance of bond instruments issued by the company,” Fitch said in a news release.

The negative outlook reflects the uncertainty of the timely execution of the CNY 5 billion capital injection plan, Fitch said.

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