In Chinese property, investment grade names suffer from high yield woes
As Evergrande and Kaisa default on US dollar notes and Shimao was downgraded to non-investment grade, will more Chinese developers follow suit?
Investment-grade Chinese property developers are not immune from the ongoing debt troubles of their high-yield peers as they face a liquidity crunch, falling stock prices and potential ratings downgrades.
On December 17, Fitch Ratings and Moody’s downgraded Shimao Group, a Chinese developer listed in Hong Kong. Moody’s lowered its rating from BB+, a notch below investment grade, further down to BB-, while Fitch downgraded Shimao by two notches from investment grade to the speculat…
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