Fitch slices Sino-Ocean two notches

Fitch Ratings said it downgraded Sino-Ocean Group Holding Ltd.'s long-term foreign-currency issuer default rating to B+ from BB and its senior unsecured rating to B+ with an RR4 recovery rating from BB. The agency also lowered Sino-Ocean's $600 million of subordinated perpetual debt to B- with an RR6 recovery rating from B+.

All ratings remain on rating watch negative.

“The downgrades reflect a reduction in Sino-Ocean's financial flexibility. The company's recent decision to defer coupon payment on its $600 million subordinated perpetual securities is an indication that liquidity is weaker than Fitch's earlier expectation despite several asset disposals over the past year. We believe refinancing risks - especially for its capital-market debt maturities in 2024 - have increased,” the agency said in a statement.

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