Moody's downgrades China Vanke's credit rating to junk status due to declining sales and funding uncertainties.
Moody's has downgraded China Vanke's credit rating from investment-grade to junk territory due to the company's declining contracted sales and rising uncertainties over its access to funding. The firm's weakening credit metrics, financial flexibility, and liquidity buffer are expected to continue over the next 12-18 months. The downgrade may further shake confidence in China's property sector, as Vanke is seen as a bellwether for Beijing's support for major developers with strong ties to the state.
March 11, 2024
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