Fitch cuts Shimao

Fitch Ratings said it downgraded Shimao Group Holdings Ltd.’s issuer default rating to BB from BBB- and its senior unsecured rating and outstanding senior unsecured notes to BB from BBB-.

The agency placed all ratings on ratings watch negative.

“The downgrade is driven by weak sales in recent months and financing conditions that have rapidly turned unfavorable for the company amid its deteriorating liquidity position. Shimao has communicated plans to improve its liquidity through a number of asset disposals, but much of these are subject to execution and market risks,” Fitch said in a press release.

The RWN reflects the possibility of more negative rating actions if Shimao cannot improve its liquidity, the agency said.

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