R&F Properties (HK) was downgraded by S&P to SD from CC on the back of the completion of its tender offer at a discount, and with a maturity extension, for its $725mn bond due January 13, 2022. S&P views the transaction as “distressed restructuring” equivalent to a default because the company has insufficient resources and limited funding options to repay the maturing notes without the transaction. While R&F HK was downgraded, the rating on R&F Properties, the parent at CC, because the it is a keepwell provider of the bond, not a guarantor.

R&F’s dollar bonds issued by Easy Tactic were down 0.3 cents to trade around 25-27 cents on the dollar.

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