Fitch downgrades Sino-Ocean

Fitch Ratings said it downgraded Sino-Ocean Group Holding Ltd.'s long-term foreign-currency issuer default rating and senior unsecured ratings to BB+ from BBB-. Fitch placed the company’s ratings on rating watch negative.

“The downgrade reflects our expectation that the company's leverage, measured by net debt/net development-property assets, will remain above our previous negative trigger of 40% in the medium term. Fitch believes Sino-Ocean's financial flexibility has also deteriorated amid the challenging operating and financing environment for the Chinese property sector,” the agency said in a press release.

The RWN reflects the position view that lower sales and ongoing capital commitments at Sino-Ocean's joint-venture projects may further tighten Sino-Ocean's liquidity buffer, Fitch said.

“Fitch is also monitoring the liquidity and refinancing situation at Sino-Ocean Capital Holding Ltd. (SOC), Sino-Ocean's 49%-owned financial JV, as well as Sino-Ocean's progress in securing additional onshore capital-market financing,” the agency said.

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