Chinese high-yield issuers at odds with credit rating agencies

Written by Shasha Dai, Managing Editor, China ||

You are ready to put your house on the market but don’t see eye to eye with the appraiser on the value of your property – or worse yet, you couldn’t afford an appraisal report.

This is the same situation many Chinese high-yield issuers find themselves these days. At a time when they need to tap the bond market for fresh capital to refinance existing debt, they are at odds with credit rating agencies over their rating methodology or have had their ratings withdrawn for unspecified commercial reasons.

Yunnan Provincial Investment Group, or YPIG, said it has been working with Moody’s as its new rating provider since Fitch downgraded and subsequently withdrew ratings of YPIG citing “commercial reasons.” Chongqing Energy Investment Group also saw its ratings withdrawn by Fitch, after it ceased participating in the rating process, according to Fitch.

Risesun Properties Group said it requested S&P withdraw its rating because it did not reflective of the company’s fundamentals. The withdrawal also helps lower its operating cost, said Risesun. || Sign up for our weekly updates here.