S&P Global Ratings affirmed Fantasia Holdings Group Co. Ltd.'s long-term issuer credit rating and the long-term issue rating on its outstanding U.S. dollar senior unsecured notes at B, with a negative outlook.
The affirmation indicates the rating agency's view that the Chinese developer has large refinancing needs, in particular, its offshore debt maturities, over the following 12 months.
Fantasia's current offshore cash balance is not adequate to redeem the U.S. dollar notes that are due in the foreseeable future, said S&P, adding that its recent issuances could relieve some of the refinancing pressure.
The negative outlook is based on the developer's sustained highly leverage and weak debt serviceability that may go on for the next one to two years.
S&P expects there are no imminent liquidity risks as Fantasia's offshore bond issuances and extensions are primarily to address its upcoming maturities.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.