S&P Global Ratings Downgrades China Vanke to Selective Default
MT Newswires Live12-24 11:10
S&P Global Ratings on Tuesday downgraded China Vanke (HKG:2202, SHE:000002) to selective default, saying it viewed the company's recent grace-period extension as distressed debt restructuring tantamount to a default.
China Vanke bondholders recently agreed to extend the grace period on 2 billion yuan in debt to Jan. 28 after previously rejecting the property developer's request to defer repayment by one year.
According to S&P Global, the firm may not have had the resources to fully pay investors by Dec. 22 had it not received the extension.
"This is given its weak liquidity," S&P Global said.
In addition to the 2 billion yuan bond, China Vanke is facing bond maturities of 9.4 billion yuan over the next six months.
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