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.