Fitch lowers 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 BB+.

“The downgrade reflects the negative impact on Sino-Ocean's credit profile from aggressive financial management at Sino-Ocean Capital Holding Ltd. (SOC), Sino-Ocean's 49%-owned associate. SOC recently secured an extension to its capital-market debt, reflecting its tightening liquidity,” Fitch said in a press release.

The agency noted SOC obtained an extension on its CNY 1 billion domestic bond puttable in September; SOC is also seeking an extension on a $20 million bank loan. “The extensions indicate that SOC's liquidity may be tighter than we had previously expected.”

All ratings remain on rating watch negative.

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