Fitch trims Jiangsu Fang Yang

Fitch Ratings said it downgraded Jiangsu Fang Yang Group Co., Ltd.'s long-term foreign-currency and local-currency issuer default ratings to BB- from BB. The agency also downgraded the rating on Fang Yang's $280 million of 7˝% senior unsecured notes due 2021 and $150 million of 5.3% senior unsecured notes due 2024 to BB- from BB. The senior unsecured notes were issued by Haichuan International Investment Co., Ltd., an indirectly and wholly owned subsidiary. The notes are guaranteed by Fang Yang.

Fitch also removed the ratings from rating watch negative that had been placed on RWN on July 13 after a portfolio review of Chinese government-related entities. “The RWN reflected a potential reassessment of the GREs' support record and financial implications of default attributes under Fitch's government-related entities rating criteria,” the agency said in a press release.

“Fang Yang's downgrade reflects a lower support score of 17.5, from 25 previously, resulting in a change to a bottom-up approach with a two-notch uplift from the b stand-alone credit profile (SCP), from a top-down approach relative to our assessment of the Lianyungang municipality's creditworthiness. This comes after Fitch revised the support track record and the financial implications of default assessments to 'moderate', from 'strong,’” the agency said.

The outlook is stable.

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