S&P Downgrades China Vanke to Junk on Weakening Sales, Margins

  • Rating cut follows similar recent moves by Moody’s and Fitch
  • Negative outlook reflects expectations sales will fall further
A China Vanke Co. construction site in Shanghai.Photographer: Qilai Shen/Bloomberg
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S&P Global Ratings downgraded China Vanke Co. to junk, underscoring mounting pressure on the state-backed developer as it faces a cash crunch and increased scrutiny from investors.

S&P lowered the company’s credit score to BB+ with negative outlook, it said in a statement on Wednesday. Moody’s Ratings and Fitch Ratings also downgradedBloomberg Terminal China Vanke to junk recently.