Fitch lowers KWG to B, remains on watch

Fitch Ratings said it downgraded Chinese homebuilder KWG Group Holdings Ltd.’s long-term foreign-currency issuer default rating to B from B+ and senior unsecured rating to B from B+, with the recovery ratings remaining at RR4.

The ratings remain on Rating Watch negative.

“The downgrade follows declining liquidity and financial flexibility amid high capital-market volatility, and the increase in KWG's leverage to above 50%, the level at which Fitch would consider negative rating action,” Fitch said in a news release.

“The Rating Watch negative reflects uncertainty over the company's near-term offshore refinancing plan.”

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