OREANDA-NEWS. 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.

The downgrade follows HSBC's application to the High Court of Hong Kong to appoint provisional liquidators to China Fishery and China Fisheries International Ltd. This winding-up petition, if successful, will result in the liquidation of China Fishery and its ratings will then 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 USD300m notes due 2019 and other debt is not accelerated.