Fitch cuts Xiamen Xiangyu

Fitch Ratings said it downgraded Xiamen Xiangyu Group Corp.’s long-term foreign- and local-currency issuer default ratings and the $500 million of 4½% senior unsecured notes due 2023 to BBB- from BBB. Subsidiary HongKong Xiangyu Investment Co., Ltd. sold the notes, which guaranteed by the parent.

“The downgrade reflects our assessment that the financial implications of a default by Xiangyu group have weakened, given its increasingly commercial business profile. Fitch perceives government support and the impact of a default to be different between more commercially run government-related entities (GRE) and functional GREs,” the agency said in a press release.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.