Fitch lowers KWG

Fitch Ratings said it lowered KWG Group Holdings Ltd.'s long-term foreign-currency issuer default and senior unsecured ratings to B- from B, with the debt recovery ratings remaining at RR4.

“The downgrade is mainly due to the continuing decrease in contracted sales, which puts more pressure on the company's operating cash flows and liquidity buffer. The sales recovery is still uncertain and sentiment in the property market remains weak,” Fitch said in a press release.

The agency noted KWG's total contracted sales plummeted by 64% year-over-year and 5.3% month-over-month in May 2022 to CNY 4.1 billion.

The ratings remain on rating watch negative.

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