Moody's revises outlook on four Chinese real estate firms to 'negative' (updated)

China Overseas Land & Investment

21/09/2023 15:22

(Adds details and background throughout)
       Sept 21 (Reuters) - Ratings agency Moody's on Thursday
revised its outlook on four Chinese real estate firms to
"negative" from "stable", as the country's property sector reels
from mounting debt.
        The agency's action comes just a week after it revised
the outlook on the country's crisis-hit property sector to
"negative", citing 
    growth-related challenges
    .
  
        The outlook change on real estate firms reflects
uncertainties over their ability to achieve stable operating
performance and credit metrics to support its ratings over the
next 12-18 months, Moody's said in separate statements.
  
    The revisions were on China Overseas Grand Oceans Group
 0081.HK , Yuexiu Property  0123.HK , China Overseas Land
 0688.HK  and China Resources Land  1109.HK .
        The country's property sector has been in turmoil ever
since China Evergrande  3333.HK  defaulted on its debt
obligations in 2021. 
  
        The industry once contributed about 25% to the country's
gross domestic product before being battered by a government
crackdown and collapse in home sales over the last couple of
years.
  
        Earlier this week, Chinese developers Sunac  1918.HK 
and Country Garden  2007.HK  forged debt deals with creditors.
China Evergrande is still seeking to restructure a total of
$31.7 billion in debt.
  

 (Reporting by Raechel Thankam Job and Shashwat Awasthi; Editing
by Anil D'Silva)
 ((RaechelThankam.Job@thomsonreuters.com;))