Fitch changes Concord New Energy view

Fitch Ratings said it revised the outlook on Concord New Energy Group Ltd.'s long-term foreign-currency issuer default rating to negative from stable and affirmed the rating at BB-.

The agency also affirmed the senior unsecured rating and the rating on its $200 million 7.9% bonds due 2021 at BB-.

Fitch said the negative outlook reflects the company’s sharp rise in leverage in 2017, which exceeded the agency’s expectation primarily due to the time lag between capacity installation and grid connection and lower-than-estimated realized average tariffs, resulting in lower power generation revenue.

In addition, profitability of the engineering, procurement and construction segment that was weaker than Fitch's expectation, coupled with higher-than-expected selling, general and administrative expenses, dampened the company’s EBITDA generation, the agency said.

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