Fitch Ratings downgrades property developer KWG Group to CCC+ from B-

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Fitch Ratings downgraded Chinese property developer KWG Group Holdings Limited’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘CCC+’ from ‘B-‘, and senior unsecured rating to ‘CCC+’ from ‘B-‘, with the Recovery Ratings remaining at ‘RR4’. All ratings have been removed from Rating Watch Negative.

The downgrade is mainly due to KWG’s higher refinancing risk and tight liquidity as the company has large maturities coming up, said Fitch.

The company is in the process of seeking refinancing for the debt, but any delay may put pressure on its repayment ability, it said.