Fitch Downgrades Newland’s Notes

Newland International Properties saw Fitch downgrade its $220m of senior secured notes to CCsf Wednesday. The agency cites delivery delays on finished units for the Trump Ocean Club hotel being developed by the borrower in Panama. This comes amid continued uncertainty over the willingness of end buyers to take possession of the units, Fitch adds. As of June 30, Newland held $12.8m in restricted cash, of which $10.5m was slated for a debt service reserve account. “The transaction’s liquidity is becoming more dependent on the timely pace of collections from the closings and future sales to meet ongoing debt-service requirements,” the agency says. Newland International issued the $220m 2014 NC3 bonds in 2007 via Bear Stearns, pricing them with a 9.5% coupon to yield 10.25%.