Moody’s revises outlook on four Chinese real estate firms to ‘negative’
RATINGS agency Moody’s on Thursday (Sep 21) revised its outlook on four Chinese real estate firms to “negative” from “stable”, as the country’s property sector reels from mounting debt.
The agency’s action comes just a week after it revised the outlook on the country’s crisis-hit property sector to “negative”, citing growth-related challenges.
The outlook change on real estate firms reflects uncertainties over their ability to achieve stable operating performance and credit metrics to support its ratings over the next 12-18 months, Moody’s said in separate statements.
The revisions were on China Overseas Grand Oceans Group, Yuexiu Property, China Overseas Land and China Resources Land.
The country’s property sector has been in turmoil ever since China Evergrande defaulted on its debt obligations in 2021.
The industry once contributed about 25 per cent to the country’s gross domestic product before being battered by a government crackdown and collapse in home sales over the last couple of years.
A NEWSLETTER FOR YOU
Property Insights
Get an exclusive analysis of real estate and property news in Singapore and beyond.
Earlier this week, Chinese developers Sunac and Country Garden forged debt deals with creditors. China Evergrande is still seeking to restructure a total of US$31.7 billion in debt. REUTERS
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Property
HDB launches Pasir Ris executive condominium site for tender
ESR eyes fourth data centre in Japan
No quick fix for Australia’s housing shortage, warns RBA
China mulls government purchases of unsold homes to ease glut
Consortium led by UOL, CapitaLand places top bid of S$805.39 million for Holland Drive site
Canadian homes for sale climb with second-biggest jump on record