Moody's downgrades Shimao

Moody's Investors Service said it downgraded Shimao Group Holdings Ltd.’s corporate family rating to B2 from Ba3.

"The rating action reflects our expectation that Shimao's liquidity risks will be elevated, driven by its weakening access to funding and large near-term debt maturities," said Celine Yang, a Moody's vice president and senior analyst, in a press release.

The downgrade also considers the issuer’s slow progress on its fundraising and refinancing activities recently, which has increased uncertainties over the company's ability to address its refinancing needs, the agency added.

Shimao, at the holding company level, has many debts, coming due or puttable in 2022 including sizable offshore bank loans, offshore bonds of around $1.7 billion and onshore bonds of around RMB 8.9 billion.

The rating remains on review for further downgrade.

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