Fitch downgrades Chinese property giant Vanke
Some Chinese developers are on the verge of bankruptcy and lower property prices have deterred consumers from making investments.
Vanke -- long considered to be financially stable -- was downgraded by Fitch on Friday from "BBB" to "BB+", citing the group's "weakened sales performance" and challenges accessing funding.
"China Vanke's ratings are constrained by its liability profile and funding access amid sizable and rising capital-market debt maturities in 2024 and 2025", the US credit rating agency said.
"Without effective market access, the company's liquidity buffer will likely reduce."
Vanke was the second-largest developer in China last year in terms of sales, according to specialist firm CRIC.
It is part-owned by the city government of Shenzhen in southern China -- once seen as a guarantee of its solidity.
But setbacks make it the latest Chinese developer to be caught up in a mounting crisis within the real estate sector, following Evergrande and Country Garden.
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