Fitch cuts Guangxi Liuzhou Dongcheng

Fitch Ratings said it downgraded Guangxi Liuzhou Dongcheng Investment Development Group Co., Ltd.'s (LDID) foreign- and local-currency issuer default ratings to BB- from BB. The agency also lowered the rating on LDID's $300 million of 7% bonds due 2022 to BB- from BB.

Fitch said it removed the ratings from rating watch negative where it placed them on July 13 after a portfolio review of Chinese government-related entities.

“The downgrade comes after Fitch lowered the financial implications of default to 'strong' from 'very strong' to reflect our belief the company's access to the capital market has been reduced in recent years, which resulted in a lower overall support score. Fitch has also revised LDID's stand-alone credit profile (SCP) to b- from b due to increasing leverage,” the agency said in a press release.

The outlook is stable.

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