S&P cuts Chaoda to 'CCC', keeps rtg on watch neg

6 months from end of financial year and no annual report yet... setting off a vicious cycle of illiquidity

"-- We believe payment acceleration of Chaoda's convertible bond is imminent, and we have insufficient information on the company's current offshore cash balance and other potential sources of liquidity.

-- We believe the company has limited financial flexibility and limited ability to access capital markets.

-- We are therefore lowering the corporate credit rating on Chaoda to 'CCC' from 'B-'. We are also lowering our Greater China credit scale rating on Chaoda to 'cnCCC' from 'cnB'.

-- The ratings remain on CreditWatch with negative implications."