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New Straits Times
15-05-2025
- Business
- New Straits Times
Fitch downgrades China Vanke further on liquidity concerns
KUALA LUMPUR: Ratings agency Fitch on Wednesday downgraded ratings for Chinese property company China Vanke , citing liquidity concerns amidst an ailing property sector in the world's second largest economy. Fitch downgraded long-term foreign- and local-currency issuer default ratings (IDRs) for the embattled property developer to 'CCC+' from 'B-'. The agency also downgraded the long-term IDR for the company's unit, Vanke Real Estate (Hong Kong), to 'CCC' from 'CCC+', and its senior unsecured rating and the rating on its outstanding senior notes to 'CCC', from 'CCC+'. The downgrade follows Vanke's weak first-quarter results with sales and cash flow generation failing to meet expectations, leading to a reduction in its liquidity buffer, Fitch said. With significant debt maturing in 2025, sales decline will have a direct impact on the company's cash generation and debt-servicing capacity, Fitch said. Earlier this year, several rating agencies including S&P Global and Moody's downgraded the property developer citing liquidity concerns. Last month, China Vanke said it will receive US$454 million in loans from state-owned Shenzhen Metro Group (SZMG), its biggest shareholder, to repay its bonds. "Ongoing and timely liquidity support from SZMG may be essential to address China Vanke's near-term financing requirement and support its ratings, considering the uncertainties surrounding the company's cash flow generation," Fitch said in a statement.
Time of India
14-05-2025
- Business
- Time of India
Fitch downgrades China Vanke further on liquidity concerns
BENGALURU: Ratings agency Fitch on Wednesday downgraded ratings for Chinese property company China Vanke , citing liquidity concerns amidst an ailing property sector in the world's second largest economy. Fitch downgraded long-term foreign- and local-currency issuer default ratings (IDRs) for the embattled property developer to 'CCC+' from 'B-'. The agency also downgraded the long-term IDR for the company's unit, Vanke Real Estate (Hong Kong), to 'CCC' from 'CCC+', and its senior unsecured rating and the rating on its outstanding senior notes to 'CCC', from 'CCC+'. The downgrade follows Vanke's weak first-quarter results with sales and cash flow generation failing to meet expectations, leading to a reduction in its liquidity buffer, Fitch said. With significant debt maturing in 2025, sales decline will have a direct impact on the company's cash generation and debt-servicing capacity, Fitch said. Earlier this year, several rating agencies including S&P Global and Moody's downgraded the property developer citing liquidity concerns. Last month, China Vanke said it will receive $454 million in loans from state-owned Shenzhen Metro Group (SZMG), its biggest shareholder, to repay its bonds. "Ongoing and timely liquidity support from SZMG may be essential to address China Vanke's near-term financing requirement and support its ratings, considering the uncertainties surrounding the company's cash flow generation," Fitch said in a statement.
