Fitch cuts Shangrao Innovation

Fitch Ratings said it downgraded Shangrao Innovation Industry Investment Group Co. Ltd.'s long-term foreign- and local-currency issuer default ratings to BB- from BB and removed them from rating watch negative.

The agency placed the ratings on RWN on July 13 after a portfolio review of Chinese government-related entities. The RWN indicated the potential reassessment of the company's financial implications of default under Fitch's government-related entities rating criteria.

“The downgrade follows Fitch's downward revision of the financial implications of default rating factor to 'moderate' from 'strong', reflecting our belief the company has experienced some difficulties in accessing capital-market debt due to the deterioration of the credit profiles of similar entities. The deterioration in financing capacity or financing resilience may weaken the financial implications of default for its sponsoring government or other GREs under the same sponsor,” the agency said in a press release.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.