Fitch slashes Yuzhou Group

Fitch Ratings said it downgraded Yuzhou Group Holdings Co. Ltd.'s long-term foreign-currency issuer default rating to CCC- from B. Fitch also slashed the senior unsecured rating and the ratings on the outstanding U.S.-dollar senior unsecured notes to CCC- from B, with an RR4 recovery rating.

“The downgrade reflects the diminishing likelihood of Yuzhou refinancing its $590 million public senior notes due January 2022 and the difficulty the company is likely to face in addressing its capital-market maturity wall in the next six to nine months, given its limited funding access,” Fitch said in a press release.

The agency noted it has no information other than Yuzhou’s public statements.

Yuzhou also has a CNY 3.5 billion onshore puttable bond due in April, CNY 990 million in asset-based securities, a CNY 3 billion onshore bond due in July and a $420 million offshore bond due in September.

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