December 18, 2017 / 9:45 AM / 3 months ago

Fitch Places APAC Speculative Credits on Rating Watch on Exposure Draft

(The following statement was released by the rating agency) HONG KONG, December 18 (Fitch) Fitch Ratings has placed the ratings on three issuers in Asia-Pacific on Rating Watch Positive (RWP) or Rating Watch Negative (RWN). The respective bond issues and programmes have also been placed on RWN or RWP. The three issuers are: - Honghua Group Limited - Parkson Retail Group Limited - Sunshine 100 China Holdings Ltd A full list of rating actions is at the end of this rating action commentary. KEY RATING DRIVERS The rating actions follow the publication of an exposure draft for the agency's Corporate Rating Criteria on 14 December 2017. To provide additional granularity at lower rating levels for both issuer and issue level ratings, the exposure draft introduces the use of '+' or '-' modifiers for the 'CCC' rating category. For more details on the changes, please see "Fitch Publishes Exposure Draft for Corporate Rating Criteria", dated 14 December 2017 available on Fitch is still reviewing the APAC corporates portfolio to assess the impact of changes detailed in the exposure draft. We expect to complete the review in the next couple of weeks. RATING SENSITIVITIES Fitch expects to resolve the Rating Watches within the next six months upon the conclusion of the exposure draft period. If the final criteria are substantially similar to the exposure draft, then the ratings on the three entities are likely to change after the final criteria are published. FULL LIST OF RATING ACTIONS Honghua Group Limited - Long-Term Foreign-Currency Issuer Default Rating (IDR) of 'CCC' placed on RWP - Senior unsecured rating of 'CCC' with Recovery Rating of 'RR4' placed on RWP - 'CCC' rating on USD200 million 7.45% senior unsecured notes due in 2019 placed on RWP Parkson Retail Group Limited - Long-Term Foreign-Currency Issuer Default Rating (IDR) of 'CCC' placed on RWP - Senior unsecured rating of 'CCC' with Recovery Rating of 'RR4' placed on RWP - 'CCC' rating on USD500 million 4.5% senior unsecured notes due 2018 placed on RWP Sunshine 100 China Holdings Ltd - Long-Term Foreign-Currency Issuer Default Rating (IDR) of 'B-' placed on RWN - Senior unsecured rating of 'CCC' with Recovery Rating of 'RR6' placed on RWN Contact: Primary Analysts Yee Man Chin (Honghua) Director +852 2263 9696 Fitch (Hong Kong) Limited 19/F Man Yee Building 60-68 Des Voeux Road Central, Hong Kong Cathy Chao (Parkson) Associate Director +852 2263 9967 Fitch (Hong Kong) Limited 19/F Man Yee Building 60-68 Des Voeux Road Central, Hong Kong Rebecca Tang (Sunshine 100) Associate Director +852 2263 9933 Fitch (Hong Kong) Limited 19/F Man Yee Building 60-68 Des Voeux Road Central, Hong Kong Secondary Analysts Cathy Chao (Honghua) Associate Director +852 2263 9967 Yee Man Chin (Parkson) Director +852 2263 9696 Laura Long (Sunshine 100) Analyst +86 21 5097 3019 Committee Chairperson Kalai Pillay Senior Director +65 6796 7221 Media Relations: Wai-Lun Wan, Hong Kong, Tel: +852 2263 9935, Email: Additional information is available on Applicable Criteria Corporate Rating Criteria (pub. 07 Aug 2017) here Country-Specific Treatment of Recovery Ratings (pub. 18 Oct 2016) here Exposure Draft: Corporate Rating Criteria (pub. 14 Dec 2017) here Non-Financial Corporates Notching and Recovery Ratings Criteria (pub. 16 Jun 2017) here Additional Disclosures Solicitation Status here#solicitation Endorsement Policy here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. 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