China Fortune Land Becomes First Victim of ‘Three Red Lines’
- Fitch downgrades company rating to Restricted Default from CC
- Firm has 7.8 billion yuan of local bonds maturing in March.
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China Fortune Land Development Co. has defaulted on a $530 million dollar bond, becoming the nation’s first real estate firm to suffer a repayment failure since Beijing tightened controls of the debt-laden sector last year.
Fitch Ratings has downgraded the industrial park operator and developer to Restricted Default from CC following the Chinese company’s announcement that it has not repaid its dollar note due Feb. 28, according to a report by the ratings firm dated Monday. Fitch also said it has withdrawn the ratings as the borrower has chosen to stop participating in the rating process.