Fitch downgrades Lai Fung

Fitch Ratings said it downgraded Lai Fung Holdings Ltd.'s long-term foreign-currency and local-currency issuer default ratings to B- from B+. Fitch also lowered Lai Fung's senior unsecured rating to B- from B+ with the recovery rating remaining at 'RR4'.

“The downgrade follows deterioration in the credit profile of the parent, Lai Sun Development Co. Ltd. (LSD), such that Lai Fung's ratings no longer benefit from a rating uplift due to linkages with the parent. Fitch expects Lai Fung's investment property (IP) EBITDA interest cover to remain at 0.5x-0.6x in the financial year ending July 2023 (FY23), before trending towards 0.7x-0.8x in FY25,” the agency said in a press release.

The outlook is negative.

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