Fitch Ratings has downgraded China-based industrial-park operator and developer China Fortune Land Development Co., Ltd.'s (CFLD) Long-Term Foreign-Currency Issuer Default Rating (IDR) to Restricted Default (RD) from 'CC'.

Fitch has also downgraded CFLD's senior unsecured rating and the ratings on all outstanding bonds to 'C' from 'CC'. The Recovery Rating is 'RR4'. At the same time, Fitch has withdrawn the ratings.

The rating downgrade follows CFLD's announcement that it has not repaid its USD530 million bond, which matured on 28 February 2021. The non-payment is consistent with an 'RD' rating, signifying the uncured expiry of any applicable grace period, cure period or default forbearance period following a payment default on a material financial obligation.

Fitch has withdrawn the ratings as CFLD has chosen to stop participating in the rating process. Therefore, Fitch will no longer have sufficient information to maintain the ratings. Accordingly, Fitch Ratings will no longer provide ratings or analytical coverage for the company.

KEY RATING DRIVERS

Non-Payment of Notes: CFLD announced on 26 February 2021 that it has missed payments on more than CNY11 billion in loans and offshore bonds, including its USD530 million bond that matured on 28 February 2021. There is no grace period for CFLD's US dollar bond principal non-payment. The uncured expiry of any applicable grace period, cure period or default forbearance period following a payment default on a material financial obligation is consistent with Fitch's definition of an 'RD' rating.

DERIVATION SUMMARY

CFLD's ratings have been downgraded to 'RD', as our definition of the rating is uncured payment default but no initiation of bankruptcy filings, administration, receivership, liquidation, or other formal winding-up procedures as yet and continuity of business operations.

RATING SENSITIVITIES

Not applicable as the ratings have been withdrawn.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Non-Financial Corporate issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit https://www.fitchratings.com/site/re/10111579.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

ESG CONSIDERATIONS

Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg

Rating ActionsENTITY/DEBT	RATING	RECOVERY	PRIOR

CFLD (Cayman) Investment Ltd.

senior unsecured

LT	C 	Downgrade	RR4	CC

senior unsecured

	LT	WD 	Withdrawn		CC
China Fortune Land Development Co., Ltd.	LT IDR	RD 	Downgrade		CC
	LT IDR	WD 	Withdrawn		CC

senior unsecured

LT	C 	Downgrade	RR4	CC

senior unsecured

LT	WD 	Withdrawn		CC

View additional rating details

Additional information is available on www.fitchratings.com

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