China Has $23 Billion in Debt That Could Be Cut to Junk
- S&P has downgraded 15 Chinese issuers this year, upgraded one
- `Fallen angels are a major risk for investors this year:' ANZ
Is China Running Out of Ammunition to Intervene?
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Investors need to watch out for so-called fallen angels from China as a slowing economy prompts debt rating companies to cut more investment-grade issuers to junk.
Standard & Poor’s has downgraded 15 Chinese companies this year and upgraded one, the worst ratio in Bloomberg data going back to 2006. Some $22.6 billion of offshore bonds from the nation are now rated one step above junk by any of the three major rating agencies, Bloomberg-compiled data show. Hong Kong-based commodity trader Noble Group Ltd.’s 3.625 percent 2018 notes nosedived 19 cents on the dollar since its senior debt was cut to junk by Moody’s Investors Service on Dec. 29.