Fitch downgrades Kaisa

Fitch Ratings said it downgraded Kaisa Group Holdings Ltd.'s long-term foreign-currency issuer default rating to CCC+ from B. The agency also cut the senior unsecured rating and the rating on Kaisa's outstanding dollar-denominated senior notes to CCC+ from B, with the recovery rating unchanged at RR4. Fitch also removed Kaisa's ratings from under criteria observation.

“The downgrade reflects Kaisa's limited funding access and uncertainty over the refinancing of a significant amount of U.S.-dollar bond maturities and coupon payment through to 2022 in light of ongoing capital-market volatility. In addition, not all of the cash on Kaisa's consolidated balance sheet may be available to service the debt at the holding company, given high minority interests and project commitments,” Fitch said in a press release.

The agency noted Kaisa has about $400 million in debt due in December and around $3 billion due next year.

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