Fitch slashes Chinese homebuilder Fantasia's rating on mystery bond worries
LONDON, Oct 4 (Reuters) - Rating agency Fitch slashed Chinese property firm Fantasia Holdings Group Co.'s credit rating by four notches on Monday and warned it was at risk of default, after reports the firm had missed a payment on a bond that it had not disclosed.
Fitch cut Fantasia's rating to CCC- from B citing media reports it had missed a $100 million bond payment due on September 28 to bondholders who exercised put options on a private bond.
"The bond was guaranteed by the company, but it does not appear to have been disclosed in the company's financial reports," Fitch said.
"We believe the existence of these bonds means that the company's liquidity situation could be tighter than we previously expected".
Fitch added it had also been unable to ascertain whether Fantasia has transferred the funds for the repayment of other dollar-denominated bonds maturing on Monday. "Failure to repay the bonds would lead to further negative rating actions," it added. (Reporting by Marc Jones; Editing by Tom Arnold)
