China Developers See More Credit Rating Cuts

China developers (property) are suffering credit rating downgrades at the fastest pace in five years, as a recent slump in new-home sales adds to concerns about the sector’s debt woes.

China Developers See More Credit Rating Cuts

Moody’s Investors Service, Fitch Ratings and S&P Global Ratings have cut Chinese builders’ ratings a combined 91 times through Sept. 30, triple the number of this year’s upgrades. That’s already a record full-year count of downgrades.

China Evergrande Group remains in the spotlight, with some holders of dollar bonds with interest payments due Monday saying they had yet to receive them during Asian business hours. The latest payment uncertainties came after the embattled firm missed initial coupon deadlines for two other offshore bonds last month.

Elsewhere, Beijing is kicking off an inspection of the nation’s financial regulators, biggest state-run lenders, insurers and bad-debt managers for the first time in six years as authorities step up efforts to root out corruption in the $54 trillion financial system.

China Developers See More Credit Rating Cuts

China developers’ credit ratings have been cut at the fastest pace relative to increases since 2016, as a recent slump in new-home sales adds to worries about the sector’s debt. The 91 downgrades through Sept. 30, already a full-year record, is also more than double 2020’s full-year total, according to data compiled by Bloomberg.

Chinese Developer Fantasia’s Troubles Mount After Directors Quit (1:10 p.m. HK) Fantasia Holdings Group Co.’s woes mounted after two directors quit the troubled Chinese developer, leaving it in breach of Hong Kong listing rules.

Days after defaulting on a dollar bond, Fantasia said Ho Man resigned, expressing concern “that he had not been kept fully informed of certain crucial matters of the company in a timely manner.” Another independent non-executive director, Wong Pui Sze, also left, saying she had no disagreement with the board.

China Developers See More Credit Rating Cuts

China Starts Inspection on Financial Regulators, State Banks. China is inspecting the nation’s financial regulators, biggest state-run banks, insurers and bad-debt managers for the first time in six years as Beijing steps up efforts to root out corruption in the $54 trillion financial system.

A team led by the Central Commission for Discipline Inspection will start a two-month anti-graft check of the China Banking and Insurance Regulatory Commission, and accept complaint reports from whistleblowers until Dec. 15, according to a statement late Monday. Moody’s Cuts Modern Land to Caa2, on Watch for Further Downgrade.

Moody’s downgraded Modern Land (China) Co. by three notches to Caa2 late Monday and put the Chinese developer on watch for further downgrade, following the builder’s request that bondholders defer repayment on much of an upcoming debt maturity.

China Developers See More Credit Rating Cuts

Sinic Likely to Default on 2021 Bonds, Trigger Cross Defaults. Sinic Holdings Group Co. does not expect to make payments of the principal and last installment of interest due Oct. 18 for a $250 million bond issue, and that an event of default will likely occur, the Chinese real estate developer said in a Hong Kong stock exchange filing.

Greenland Says Pre-Sale Permits Back to Normal in China Jinan. Greenland Holdings Corp. said pre-sale permits for its property projects in the eastern Chinese city of Jinan are back to normal after the company corrected mistakes at some projects as required by the local government. The Shanghai-based developer issued a statement after the Economic Observer reported that Jinan authorities halted the firm’s permits due to recent delays in home deliveries.

China Developers See More Credit Rating Cuts via @MasterMindUpdate
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