Caixin
Caixin Global – Latest China News & Headlines

Home >

ABOUT US

CX Tech is Caixin Global's real-time tech news portal, featuring 24-hour news, short-form analysis, and roundups from business and tech media in China.

TRENDING
Provincial Party Chief Calls On Xiongan to Become Tech Powerhouse
Shanghai Paves the Road for Autonomous Vehicles
China’s Internet Safety Week Begins With Alarming Report on Data Privacy
LATEST
Airbus to Launch On-Demand Helicopter Services in China’s Greater Bay Area
China Oil Giants Face Uncertainties After Saudi Attacks: Sources
Chinese Coffee Lovers Can Now Order Starbucks Through Alibaba’s Smart Speaker
Tencent, Xiaomi Discover Not All Buybacks Created Equal
Huawei Launches ‘World’s Fastest AI Training Cluster’
Huawei Executive Says U.S. Government Should Include Company in Trade Talks
China Spending on Planes and Services to Total $2 Trillion by 2038, Boeing Says
Chinese Autonomous Truck Startup Raises $120 Million From UPS, Others
China to Release 10,000 Tons of Pork From Reserves Amid Short Supply
Appliance Company’s Husband-and-Wife Executives Punished for Stock Price Manipulation
Electric Car Battery-Maker Farasis Seeks IPO Cash to Offset Sputtering Sales
Foxconn Founder Terry Gou Abandons Taiwan Leadership Bid
Shenzhen to Make All New Ride-Hailing Vehicles Fully Electric
Suning.com to Open More Than 200 In-Carrefour Stores by September
Experts: Huawei’s Offer to License 5G Technologies a ‘Smart PR Move’
Shanghai Paves the Road for Autonomous Vehicles
Provincial Party Chief Calls On Xiongan to Become Tech Powerhouse
What Tepid Reception? JD.com Notches Turbocharged iPhone 11 Preorders
China’s Internet Safety Week Begins With Alarming Report on Data Privacy
Opinion: No, China Isn’t Waiting Out Trump for a Better Trade Deal
Tianjin Commodities Trader Downgraded for Continued Debt Risk

By Wu Hongyuran and Han Wei / Apr 30, 2019 05:43 AM / Finance

Photo: IC Photo

Photo: IC Photo

The foreign debt of Tianjin government-backed commodities trader Tewoo Group Co. Ltd. was downgraded by Fitch Ratings because of liquidity concerns. The rating company put Tewoo’s bonds on negative watch about two weeks ago.

The downgrade reflects Tewoo’s continued trouble and highlights market jitters about the solvency of the city’s state-owned enterprises, which have been hit by a wave of defaults, bankruptcies and corruption scandals in recent years.

Fitch lowered the company’s long-term foreign-currency issuer default rating to B-, a junk level, and cut the Fortune 500 company’s credit rating the second time in two weeks to CCC+.

Fitch also lowered its rating of the Tianjin government’s guarantee to Tewoo by one notch to moderate.

According to Bloomberg data, Tewoo has six outstanding offshore bonds, including a $300 million note due in December. Holders of Tewoo bonds include J.P. Morgan, Blackrock and Deutsche Bank.

Tewoo is wholly owned by the Tianjin State-owned Assets Supervision and Administration Commission (Tianjin SASAC). Its main businesses are trading commodities such as metals, fuel and minerals, as well as logistics, according to the company’s website. The company accumulated 188 billion yuan in total liabilities by the end of September, accounting for 76.5% of total assets, according to figures from Chinese financial data provider Windinfo.

Related: Fitch Warning Highlights Jitters About Tianjin’s State Firms


Share this article
Open WeChat and scan the QR code