Fitch prunes Guangzhou R&F, subsidiary

Fitch Rating said it lowered its long-term foreign-currency issuer default ratings on Guangzhou R&F Properties Co. Ltd., and its subsidiary, R&F Properties (HK) Co. Ltd. (RFHK), to C from CC. The agency also affirmed the two companies’ senior unsecured ratings and Easy Tactic Ltd.’s notes, guaranteed by RFHK, at C/RR6.

“The downgrade follows Guangzhou R&F's announcement that it is soliciting consent from bondholders to amend the terms of its U.S. dollar notes and seek waivers on events of default. Fitch considers the proposed amendments as a distressed debt exchange (DDE). If the proposed consent solicitation is successful, the IDR will be downgraded to RD (Restricted Default). Fitch will then reassess Guangzhou R&F's credit profile to determine an IDR that is consistent with the company's post-amendment capital structure and risk profile,” the agency said in a press release.

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