Fitch turns Guorui outlook to negative

Fitch Ratings said it removed Guorui Properties Ltd.'s ratings from rating watch negative. They were placed on RWN in January after completing an exchange offer and subsequently redeeming its $455 million of bonds that turned puttable in February.

The agency affirmed Guorui’s long-term foreign-currency issuer default rating and senior unsecured rating at B- The recovery rating is RR4. Fitch assigned a negative outlook.

The outlook reflects Guorui’s sustained weak liquidity position and the likelihood of it having difficulties meeting its obligations as its $323.7 million of senior notes due January 2024 become puttable in April 2022, the agency said.

“The rating affirmation is based on Guorui's controlled leverage, sufficient saleable resources and the quality land bank that supports sustainable sales activities,” Fitch said.

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