Fitch Downgrades China Fishery to 'C' on Winding up Petition
OREANDA-NEWS. Fitch Ratings has downgraded China Fishery Group Limited's (China Fishery) Issuer Default Rating (IDR) to 'C' from 'B-'. It has also downgraded the senior unsecured rating and the rating on the USD300m senior unsecured notes issued by CFG Investment S.A.C. to 'C' from 'B-', with Recovery Ratings of 'RR4'. All the ratings have been removed from Rating Watch Negative. A full list of rating actions is at the end of this commentary.
The downgrade follows HSBC's application to the High Court of Hong Kong to appoint provisional liquidators to China Fishery Group Ltd. and China Fisheries International Ltd. This winding up petition, if successful, will result in the liquidation of China Fishery and its ratings will then have to be downgraded to 'D'.
Negative: Future developments that may, individually or collectively, lead to negative rating action include:
- Approval of the winding up petition by the Hong Kong court will result in the IDR being downgraded to 'D'.
Positive: Future developments that may, individually or collectively, lead to positive rating action include:
- Rejection by the Hong Kong court of the winding-up petition
- China Fishery has secured sufficient bank facilities for refinancing and its operational needs
- Redemption of 2019 notes and other debt is not accelerated
Full list of rating actions:
China Fishery Group Limited
Long-Term IDR downgraded to 'C' from 'B-'; Off Rating Watch Negative
Senior unsecured rating downgraded to 'C' from 'B-'; Recovery Rating at 'RR4'
USD300m senior unsecured notes issued by CFG Investment S.A.C. and guaranteed by China Fishery downgraded to 'C' from 'B-'; Recovery Rating at 'RR4'
Prior to the above rating action, the USD 300m senior unsecured notes issued by CFG Investment S.A.C. and guaranteed by China Fishery were downgraded to 'B-' from 'B+' with Recovery Rating at 'RR4' on 15 October 2015, in connection with the downgrade of China Fishery's Long-Term IDR to 'B-' from 'B+'.