Fitch cuts Xinggang Investment

Fitch Ratings said it downgraded Xinggang Investment Group Co., Ltd.'s long-term foreign- and local-currency issuer default ratings to BBB from BBB+ and removed them from rating watch negative. Fitch also lowered XIG's $300 million of 3.4% senior unsecured notes due 2023 to BBB from BBB+, and removed the RWN.

Fitch placed the issuer default ratings of XIG, and those of several Chinese government-related entities on RWN on July 13, following a portfolio review of Chinese state-owned entities. “The RWN reflected the potential reassessment of the company's status, ownership and control attribute under Fitch's government-related entities criteria,” the agency said in a press release.

“The downgrade follows Fitch's downward revision of the status, ownership and control rating factor to 'strong' from 'very strong', reflecting our belief that the current shareholding and management structure may result in less direct control by the Zhengzhou municipal government of XIG's operational, investment and financing activities, compared with peers with rating factors assessed at 'very strong,’” Fitch said.

The outlook is stable.

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