Moody’s downgrades Chinese developer Country Garden deep into junk territory after company misses interest payments

Moody’s Investors Service downgraded Country Garden Holdings Co. Ltd.’s rating to Caa1 from B1 early Thursday, after the Chinese developer failed to make interest payments on dollar bonds earlier this week. “The downgrade reflects Country Garden’s heightened liquidity and refinancing risks in view of its deteriorated liquidity and financial flexibility, sizable refinancing needs and still-constrained access to funding,” said Kaven Tsang, a Moody’s senior vice president, in a statement.

“The downgrade reflects Country Garden’s heightened liquidity and refinancing risks in view of its deteriorated liquidity and financial flexibility, sizable refinancing needs and still-constrained access to funding,” said Kaven Tsang, a Moody’s senior vice president, in a statement. The developer missed $22.5 million of interest payments that were due Monday on debt with a face value of $1 billion, as the Wall Street Journal reported.

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China's Country Garden Defaults on Interest Payments, Bonds FallChina's biggest property developer, Country Garden, defaulted on interest payments on dollar-denominated debt with a face value of $1 billion, causing a sharp decline in its bonds and raising concerns about China's heavily indebted real estate sector.
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