Yuzhou Group was downgraded to RD from C by Fitch on the back of the completion of an exchange offer on January 20 for two dollar bonds – its $340mn 6% bond due January 25 and $242.069mn 8.625% bond due January 23 that Yuzhou combined into new notes with a coupon of 7.8125% maturing in January 2023. The developer was given a recovery rating of RR4. Below are the recovery rating assumptions:
Yuzhou’s dollar bonds are lower with its 7.85% 2026s down 1.1 points to 19.38 cents on the dollar.
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