Fitch lowers Lanzhou Construction

Fitch Ratings said it lowered Lanzhou Construction Investment (Holding) Group Co., Ltd.'s (LZJT) long-term foreign- and local-currency issuer default ratings to BB from BB+. The agency also downgraded the rating on the $300 million of 4.15% senior unsecured notes due Nov. 15, 2022, issued by City Development Co. of Lan Zhou and guaranteed by LZJT, to BB from BB+. The outlook is negative.

“The downgrade and negative outlook reflect decreasing financial flexibility and uncertainty over LZJT's refinancing of concentrated onshore debt maturities up until March 2022, in light of capital market volatility and tight funding conditions. LZJT will need to repay the debt with largely government-arranged funding if market access remains restricted,” Fitch said in a press release.

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