Moody’s Turns Negative on China Property Developers’ Outlook

Moody’s Investors Service revised its credit outlook for Chinese developers to negative from stable, citing a slowdown in home sales growth as liquidity weakens and inventories rise in the coming 12 months.

The outlook change is the first by the credit rating provider on China’s property market since November 2012, it said in a statement today. Home sales growth will decelerate to 5 percent at most on a year-on-year basis over the next year, “materially lower” than 27 percent growth last year, it said.