Fitch lowers Guangzhou R&F view to negative

Fitch Ratings said it affirmed Guangzhou R&F Properties Co. Ltd.’s long-term foreign- and local-currency issuer default ratings at BB.

The outlook was revised to negative from stable.

Fitch also said it affirmed the company’s senior unsecured ratings at BB, along with the ratings on its outstanding notes and ratings on notes issued by subsidiaries at BB.

The agency also affirmed Big Will Investments Ltd.’s $388 million 10 7/8% senior unsecured notes due 2016 at BB; Caifu Holdings Ltd.’s $600 million 8¾% senior unsecured notes due 2020 at BB; and Trillion Chance Ltd.’s $1billion 8½% senior unsecured notes due 2019.

The outlook revision reflects an expectation that Guangzhou R&F will need until 2017 to bring its leverage ratio, Fitch said.

The company is slowing down its land acquisitions, which is driving the de-leveraging, the agency said.

The ratings are supported by the company’s superior EBITDA margins of about 30%, large business scale and well-diversified land bank in tier 1 and tier 2 cities, Fitch said.

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