Fitch downgrades China Fortune Land

Fitch Ratings said it downgraded China Fortune Land Development Co., Ltd.’s long-term foreign-currency issuer default rating, its senior unsecured rating and the ratings on all its outstanding bonds to CC from CCC. The recovery rating is RR4.

“The rating downgrade follows CFLD’s announcement that it has missed payments on multiple loans amounting to more than CNY 5.3 billion and negotiating with lenders to restructure the debt. It is unclear whether these missed payments constitute a default as the terms of the loans are non-public. CFLD has not missed payments on its capital-market debt, but Fitch believes it will face significant refinancing risks with its $530 million offshore bond maturing in February as well as its domestic bond and perpetual loan maturities in March 2021, which we estimate at around CNY 14 billion,” Fitch said in a press release.

Fitch noted market reports indicate the set up of a creditor committee.

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