BMW’s Chinese Venture Partner Defaults on 1 Billion Yuan Bond

Caixin Global | Oct 26, 2020 at 8:17 PM
  • Brilliance Auto Group Holdings Co. Ltd., parent of BMW AG’s main Chinese joint-venture partner, failed to repay a 1 billion yuan ($149 million) bond that came due Friday.
  • In 2003, Brilliance China Automotive Holdings Ltd., a Brilliance Auto subsidiary, established a joint venture with the German luxury automaker to make passenger cars with the BMW brand at two plants in Shenyang, capital of Brilliance’s home province.
  • Dagong Global Credit Rating Co. Ltd. on Tuesday downgraded (link in Chinese) Brilliance Auto’s credit rating to A+ from AA, while Golden Credit Rating International Co. Ltd. downgraded (link in Chinese) Brilliance’s rating to AA- from AA+ on Oct. 15.