The property sector crisis in China intensified as Moody’s unexpectedly withdrew credit ratings from several prominent companies.
Today, the credit rating agency abruptly removed ratings for 11 Chinese firms, undermining Beijing’s efforts to rejuvenate the world’s second-largest economy.
Moody’s stripped ratings from 10 property developers, including Logan Group, Ronshine China, and Zhenro Properties Group, attributing the decision to “business reasons.”
Previously, the agency had also downgraded China Great Wall Asset Management, a key player in managing the country’s bad debt, by removing its Baa3 rating.
This decisive action follows Moody’s revision of the outlook for Chinese sovereign bonds to negative in December.
China has been struggling with an economic downturn post-pandemic, leading to a marked decrease in property investment nationwide and contributing to slower economic growth.
The collapse of Evergrande, one of China’s largest homebuilders, in 2021, sent shockwaves through the market. This event, along with the failure of other developers, has exacerbated the crisis.
