Fitch: Sunac China to negative

Fitch Ratings said it revised the outlook on Sunac China Holdings Ltd.'s long-term foreign-currency issuer default rating to negative from stable. The property developer's issuer default rating and senior unsecured ratings have been affirmed at BB-.

The BB- expected rating of the proposed dollar-denominated senior unsecured notes has been withdrawn following the cancellation of the notes issue, Fitch said.

The outlook revision reflects a concern that the company's financial liquidity and flexibility may be weakened by the cancellation of the proposed notes issue, particularly in light of Sunac's weak contracted sales year to date, the agency said.

With the cancellation of the notes issue, Fitch said it estimates that Sunac needs to achieve contracted sales of ¥11 billion in 2011 to maintain sound liquidity.

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