Fitch lowers China Shanshui

Fitch Ratings said it downgraded China Shanshui Cement Group Ltd.’s long-term issuer default rating to RD (restricted default) from C.

The downgrade follows news that the company filed a winding up petition and an application for the appointment of provisional liquidators with the Grand Court of the Cayman Islands, Fitch said.

The filing constitutes an event of default under the $500 million offshore notes due 2020, the agency said.

The company’s senior unsecured rating is affirmed at C while the recovery rating is downgraded to RR6 from RR4.

The filing of the petition when the company’s business remains viable raises uncertainties about how offshore creditors, who do not benefit from guarantees from onshore operating entities, will be treated during any recovery process, Fitch said.

The company also said that it is not able not repay about ¥2 billion of onshore debt due Nov. 12, the agency said.

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