Fitch turns Kunming view to negative

Fitch Ratings said it revised the outlook on Kunming Traffic Investment Co., Ltd. to negative from stable and affirmed the BB+ foreign- and local-currency issuer default ratings. The agency also affirmed the rating on the company's $2 billion medium-term note program at B+. Simultaneously, Fitch withdrew all the ratings.

“The negative outlook reflects decreasing financial flexibility in light of tight funding conditions. KMTI's financing costs have risen from 2H21. The short-term debt/total debt ratio increased to over 30% in 1Q22 and the cash coverage/short-term debt ratio also showed a worsening trend,” Fitch said in a press release.

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