Chinese Developer Sunac Suffers Downgrades on Funding Worries
- Fitch, S&P both cut company’s rating by one notch to BB-
- Firm is China’s third-largest developer by contracted sales
A pedestrian passes unfinished apartment buildings at construction site developed by Sunac China Holdings Ltd., in Shanghai.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
China’s third largest developer by sales received its second credit downgrade in as many days, highlighting concerns over builders once perceived as safer bets.
Sunac China Holdings Ltd. was dropped a notch to BB- by S&P Global Ratings on Friday, following the same move by Fitch Ratings the previous day. Both credit assessors’ outlook is negative. They cited uncertainty about the developer’s 2022 liquidity, with S&P saying that though it believes Sunac can meet this year’s debt maturities, “the margin of error is eroding.”