Fitch chops Kaisa

Fitch Ratings said it cut Kaisa Group Holdings Ltd.'s long-term foreign-currency issuer default rating to C from CCC- and its senior unsecured rating to C from CCC- with the recovery rating maintained at RR4.

“The downgrade reflects the likelihood that Kaisa missed the interest payments on its senior unsecured notes and entered the consequent 30-day grace period before non-payment constitutes an event of default,” Fitch said in a press release.

Kaisa had a $58.8 million coupon payment that was due Thursday for its $1 billion of 11.7% bond due 2025, and a $29.9 million coupon that was due Friday for its $500 million of 11.95% bond due 2023. So far, no announcement has been made, and Fitch has been unable to confirm if the coupon payments have been made.

“We have therefore assumed that the company has entered the 30-day grace period for interest non-payment before an event of default is triggered.”

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