Fitch Ratings says that China Shanshui Cement Group Ltd's announcement that it intends to offer to repurchase its US$500m 7.5 per cent senior notes due 2020 (2020 notes) does not affect the company's rating. This is because the company remains in default on its onshore debt, which triggered a cross-default on its offshore notes.
Shanshui's Issuer Default Rating will be reviewed once Shanshui has redeemed or restructured all its debt currently in default. Fitch will withdraw Shanshui's issue ratings should all of its offshore bonds be redeemed. Aside from the 2020 bonds, Shanshui also has US$29m of notes due 2016 outstanding in the offshore market. The company says it plans to make the offer for the 2020 notes by 19 January 2016.
Fitch downgraded Shanshui's rating to 'RD', indicating restricted default, in November 2015 after it filed a winding-up petition and application to appoint provisional liquidators in the Cayman Islands court. The company also said it was not able to repay around CNY2bn (US$0.3bn) of onshore debt. The winding-up petition and application for liquidation were dismissed by the court.