International ratings agency Moody’s has stripped state-backed property giant China Vanke of its investment-grade credit rating amid concerns over its liquidity and ability to access funding amid declining sales, reports the South China Morning Post. Moody’s Ratings withdrew China Vanke’s “Baa3” issuer rating, replacing it with a “Ba1” corporate family rating, which judges the debt obligations of the parent corporation and its subsidiaries to be “speculative and subject to substantial credit risk.” The company’s continuing exposure to funding volatility, on top of its high refinancing needs, does not support an investment-grade rating, according to the ratings agency. Moody’s also downgraded the bonds and medium-term notes of Vanke Real Estate, a subsidiary.
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