Fitch downgrades China Grand Auto

Fitch Ratings said it lowered China Grand Automotive Services Group Co., Ltd.'s long-term foreign-currency issuer default rating and its senior unsecured rating to B- from B, with the recovery rating on its notes remaining at RR4. The rating watch negative remains on all ratings.

“Fitch expects CGA's liquidity to deteriorate if upcoming capital-market maturities are repaid fully with cash. CGA's next significant capital-market maturity is the $253 million 8 5/8% notes due April 2022. It also has an onshore syndicated loan due in June 2022. CGA made progress in the past month in refinancing part of its debt, but liquidity is weaker than Fitch expected because CGA used a larger amount of readily available cash than we anticipated to make debt payments.,” Fitch said in a press release.

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