Fitch may cut Hopson Development

Fitch Ratings said it placed Hopson Development Holdings Ltd.'s long-term foreign-currency issuer default rating and senior unsecured debt rating of BB on Rating Watch negative.

The watch reflects an increasing concern over the impact of the new austerity measures launched by the Chinese government since 2007 on the performance of Hopson, especially given the latter's continued aggressive stance in land bank acquisition, Fitch said.

The agency said it may consider notching down Hopson's senior unsecured debt rating from the issuer default rating if an increase in the subsidiaries' secured debt and senior unsecured debt worsen the structural subordination status of the senior unsecured lenders at the parent level.

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