Correct: Fitch Downgrades China Fishery to 'C' on Winding up Petition

China Fishery

03/12/2015 09:35

(The following statement was released by the rating agency)

HONG KONG, December 03 (Fitch) This announcement replaces the version published 
on 26 November 2015 to include a full list of rating actions and clarify the 
downgrade of notes issued by CFG Investment S.A.C, China Fishery's financing 
vehicle.

Fitch Ratings has downgraded China Fishery Group Limited's (China Fishery) 
Issuer Default Rating (IDR) to 'C' from 'B-'. It has also downgraded the senior 
unsecured rating and the rating on the USD300m senior unsecured notes issued by 
CFG Investment S.A.C. to 'C' from 'B-', with Recovery Ratings of 'RR4'. All the 
ratings have been removed from Rating Watch Negative.  A full list of rating 
actions is at the end of this commentary.

The downgrade follows HSBC's application to the High Court of Hong Kong to 
appoint provisional liquidators to China Fishery Group Ltd. and China Fisheries 
International Ltd. This winding up petition, if successful, will result in the 
liquidation of China Fishery and its ratings will then have to be downgraded to 
'D'.

RATING SENSITIVITIES

Negative: Future developments that may, individually or collectively, lead to 
negative rating action include: 

- Approval of the winding up petition by the Hong Kong court will result in the 
IDR being downgraded to 'D'.

Positive: Future developments that may, individually or collectively, lead to 
positive rating action include: 

- Rejection by the Hong Kong court of the winding-up petition

- China Fishery has secured sufficient bank facilities for refinancing and its 
operational needs

- Redemption of 2019 notes and other debt is not accelerated

Full list of rating actions:

China Fishery Group Limited

Long-Term IDR downgraded to 'C' from 'B-'; Off Rating Watch Negative

Senior unsecured rating downgraded to 'C' from 'B-'; Recovery Rating at 'RR4'

USD300m senior unsecured notes issued by CFG Investment S.A.C. and guaranteed by 
China Fishery downgraded to 'C' from 'B-'; Recovery Rating at 'RR4'

Prior to the above rating action, the USD 300m senior unsecured notes issued by 
CFG Investment S.A.C. and guaranteed by China Fishery were downgraded to 'B-' 
from 'B+' with Recovery Rating at 'RR4' on 15 October 2015, in connection with 
the downgrade of China Fishery's Long-Term IDR to 'B-' from 'B+'.

Contact: 

Su Aik Lim

Senior Director

+852 2263 9914

Fitch (Hong Kong) Limited

19/F Man Yee Building

68 Des Voeux Road Central, Hong Kong

Secondary Analyst

Yee Man Chin

Director

+852 2263 9696

Committee Chairperson

Kalai Pillay

Senior Director

+65 6796 7221

Media Relations: Wai-Lun Wan, Hong Kong, Tel: +852 2263 9935, Email: 
wailun.wan@fitchratings.com.

Additional information is available on www.fitchratings.com.

Applicable Criteria 

Corporate Rating Methodology - Including Short-Term Ratings and Parent and 
Subsidiary Linkage (pub. 17 Aug 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=869362

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Dodd-Frank Rating Information Disclosure Form 

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr 
_id=995862

Solicitation Status 

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=995862

Endorsement Policy 

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&det 
ail=31

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