Fitch Puts Newland on Watch Negative

Fitch has placed the B+ ratings of Newland International’s $220m senior secured notes on watch negative, citing a recently disclosed $26.9m construction cost overrun for Panama’s Trump Ocean Club International Hotel & Tower project along with a delay in the delivery of finished units to buyers and continued concern over the willingness and ability of the end buyer to take possession of units upon delivery. Fitch says unit sales have continued and the project is 84% sold. In early April, Moody’s cut Newland to B2 from B1, citing construction cost increases. Newland is a real estate development company established to develop the Trump Ocean Club International Hotel & Tower in Panama City.