Rating agency Fitch reported another three-notch downgrade of China's 03883.HK long-term foreign currency issuer from "B -" to "CCC-". Its senior unsecured bond rating and outstanding US dollar senior unsecured note rating was also downgraded from "B -" to "CCC-", with a recovery rating of RR4, removing it from the negative watch list.

The bank noted that the downgrade reflected doubts about the company's ability to refinance $688 million of senior notes due in January, pointing to its limited financial flexibility and lack of funding channels, and estimated that 8.8 billion yuan of debt would mature by the end of next year.

Fitch also said that it is believed that the company needs to sell assets to meet the above liabilities, but the process takes time and implementation risks.