[Contagion] Fitch downgrades Aoyuan Group from CCC- to C. Reason: “a default or default-like process has begun.”

Fitch Ratings – Hong Kong – 07 Dec 2021: Fitch Ratings has downgraded China Aoyuan Group Limited’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘C’, from ‘CCC-‘. Fitch has also downgraded the senior unsecured rating and the ratings on the outstanding US-dollar senior unsecured notes to ‘C’, from ‘CCC-‘, with the Recovery Rating remaining at ‘RR4’.

The downgrade reflects our view that a default or default-like process has begun, based on the company’s announcement that it has not made payments or reached an agreement with creditors regarding its offshore financing, after it received notice from creditors demanding payment on financings with principal amount of around USD651 million following recent rating actions by rating agencies.

Aoyuan has not provided further information to Fitch beyond its public announcements.

www.fitchratings.com/research/corporate-finance/fitch-downgrades-china-aoyuan-group-to-c-07-12-2021