Fitch drops Hoang Anh Gia Lai view to negative

Fitch Ratings said it revised Hoang Anh Gia Lai JSC's outlook to negative from stable.

Its long-term foreign- and local-currency issuer default ratings were affirmed at B.

The agency also said it downgraded the company's senior unsecured rating and its $90 million notes to B- from B and revised the recovery rating on the notes to RR5 from RR4.

The outlook revision reflects the higher credit risk faced by the company due to a sharp drop in property sales in Ho Chi Minh City, Fitch said.

As a result, the company was saddled with completed, but unsold, inventory, the agency said, and this far exceeded previous expectations.

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