Vanke’s Rating Cut Deeper Into Junk Territory on Weak Sales
- Moody’s also cites expectations of ongoing margin pressure
- Developer’s contracted sales for July fell 13% on year
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Moody’s cut China Vanke Co.’s debt rating deeper into junk territory, underscoring mounting pressure on the state-backed developer as it faces a cash crunch and declining sales.
The ratings firm, which stripped Vanke of its investment-grade rating in March, said the one-notch downgrade to B1 from Ba3 reflected expectations of weakening contracted sales and ongoing margin pressure.