Fitch might trim Sirius

Fitch Ratings said it placed Sirius International Group, Ltd.'s ratings on rating watch negative, including its BBB long-term issuer default rating and BBB- senior debt rating.

The agency said the negative watch reflects near-term concerns following recent actions by China Minsheng Investment Group Corp., Ltd. through a written resolution to prohibit Sirius from issuing any shares without the approval of at least 75% of the shareholder voting rights.

“Given CMIG's 96% ownership of Sirius's common shares, the resolution would effectively disallow Sirius from executing on a planned rights offering that would increase its public float and enhance its capital position,” the agency said in a news release.

“As a result, Sirius's financial flexibility is further reduced.”

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