DOLLAR bonds of Chinese luxury clothing company Shandong Ruyi Technology Group Co. plunged to record lows Friday after S&P Global Ratings withdrew its credit rating on the firm.

Shandong Ruyi’s dollar bond due Dec. 19 fell 15 U.S. cents on the dollar while the note due 2022 fell 10 cents in Hong Kong. Both bonds dropped to all-time lows.

S&P on Friday said it had withdrawn its CCC+ credit rating on Shandong Ruyi at the company’s request. Its rating outlook on the company was negative at the time of the withdrawal, S&P said.

“Shandong Ruyi should be able to meet its bullet debt maturities in December 2019 with the recent backing of Jining City Urban Construction Investment Co., a State-owned enterprise,” S&P said, adding that some execution risks could be expected given the short time frame.

State-owned Jining City Urban Construction Investment Co. bought a 26 percent stake in Shandong Ruyi in October for 3.5 billion yuan (US$497 million). Jining City Construction is now Shandong Ruyi’s second-biggest stakeholder.

While Shandong Ruyi juggles its own debt burden, it’s also facing a negative impact from defaults in other Shandong-based companies, according to Li Yunfei, an analyst at Pacific Securities Co. (SD-Agencies)