Fitch drops Yinchuan Tonglian Capital

Fitch Ratings said it downgraded Yinchuan Tonglian Capital Investment Operation Group Co., Ltd.'s long-term foreign and local currency issuer default ratings to BB- from BB.

Fitch also downgraded the company’s $300 million 4.45% senior bonds due 2023 to BB- from BB.

All ratings were placed on rating watch negative.

“The downgrade follows a revision in our assessment of YCTL's financial implications of default to moderate from strong, leading to a rating approach change, according to our government-related entities rating criteria,” the agency said in a news release.

“We now rate the company from the bottom up three notches above the standalone credit profile, instead of top down from our internal assessment of the sponsoring government.”

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