Fitch puts Guangdong - Hong Kong on watch

Fitch Ratings said it placed Guangdong - Hong Kong Greater Bay Area Holdings Ltd.’s B- ratings on rating watch negative.

On Thursday, the company said it would not report its audited financial statements by Thursday, which was the deadline for Hong Kong listings, and did not provide an expected publication date. Ghkgba cited the pandemic for the delay. It did not mention a change in auditors or any disputes with its auditor.

“Fitch believes problems with releasing timely audited results, especially if there is a change in auditor, may be credit sensitive for developers with ratings in the B category or above as funding access may be affected, while potential buyers of the company's assets may be deterred. We think the delay in Ghkgba's audited statement is due to a technical reason. However, evidence of deterioration in access to liquidity and financing from a prolonged delay will result in negative rating action,” the agency said in a press release.

Fitch noted the company has $75 million in private offshore bonds due in May and appears to have enough cash to cover the maturity.

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