OREANDA-NEWS. Fitch Ratings has downgraded China Shanshui Cement Group Limited's (Shanshui) Long-Term Issuer Default Rating (IDR) and senior unsecured ratings to 'C' from 'B-'. The Recovery Rating on the senior unsecured rating is 'RR4'.

The downgrade follows the company's announcement on 5 November that its subsidiary, Shandong Shanshui Cement Group Co., Ltd, faces uncertainties in repaying onshore debt of around CNY2bn due on 12 November 2015. There is no grace period for repayment on most onshore debt. The company announced that a default on the onshore debt would trigger the cross default provisions of its other debt, including the offshore USD500m notes due in 2020.

RATING SENSITIVITIES

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

- Failure to repay the onshore debt due on 12 November 2015, which will result in the IDR being downgraded to 'RD'.

Positive: Future developments that may, individually or collectively, lead to positive rating action include:
- Repayment of the onshore debt due on 12 November 2015, and securing sufficient liquidity to meet other immediate debt maturities.