Fitch cuts Yinchuan Tonglian

Fitch Ratings said it lowered Yinchuan Tonglian Capital Investment Operation Co., Ltd.'s (YCTL) long-term foreign- and local-currency issuer default ratings to BB+ from BBB-. The agency also downgraded YCTL's $300 million of 4.45% senior unsecured bonds due 2023 to BB+ from BBB.

“The downgrade follows a revision in our assessment of YCTL's financial implications of default to 'strong' from 'very strong' under Fitch's government-related entities rating criteria, leading to a lower government-related entity (GRE) score. This reflects YCTL's decreasing flexibility in refinancing debt and tight funding conditions in the region,” Fitch said in a press release.

The outlook is negative.

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