By Sherry Qin
Fitch Ratings will withdraw all ratings on Country Garden Services next month, a move that comes months after it downgraded the sister company of troubled Chinese property giant Country Garden Holdings.
The ratings company said Monday it would drop coverage of CGS around Dec. 12 for “commercial reasons,” without elaborating.
Fitch in August had downgraded CGS to BB+ from BBB-, saying its profitability and funding access “may be damaged by heightened liquidity pressure at its sister company.” At the same time Fitch flagged the company as “rating watch negative,” which it said captured the risk of erosion in liquidity and working capital.
Country Garden Holdings had more than $15 billion in international bonds and loans outstanding at the end of June, and last month missed a final deadline to pay interest on an offshore bond, The Wall Street Journal has reported.
CGS in August said it was good financial position after it posted a rise in sales in the first half of the year.
Write to Sherry Qin at [email protected]
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