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HNA Warning Signs Keep Sprouting Up Over Mounting Debt Costs

  • Credit-rating firms voice concerns about HNA subsidiaries
  • Group units cancel fundraising plans as borrowing costs surge
The HNA Group Co. building stands in Beijing, China, on Wednesday, Aug. 9, 2017. Big Chinese dealmakers including HNA have been under increasing scrutiny this year as the Communist Party steps up its clampdown of capital outflows to protect the yuan from weakening further.
Photographer: Qilai Shen/Bloomberg
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HNA Group Co., one of China’s most indebted companies, is facing increasing difficulties raising funds as scrutiny mounts over the acquisitive conglomerate’s surging borrowing costs.

In the past week, S&P Global Ratings and Fitch Ratings have voiced concerns about at least four companies because of their ties with HNA. Separately, group flagship Hainan Airlines Holding Co. canceled a bond sale, another unit scrapped a share offering and HNA subsidiaries have been paying some of their highest borrowing costs ever.