Fitch Exit Stirs Waves: Global ratings agency Fitch announced on Monday its intention to withdraw all ratings on China’s Country Garden Services Holding (6098.HK) around Dec. 12, citing commercial reasons for the move.
In a statement, Fitch noted, “Fitch believes that Country Garden Services investors benefit from increased rating coverage by Fitch and is providing approximately 30 days’ notice to the market of the rating withdrawal.” The agency had recently downgraded Country Garden Services to BB+ and placed its rating on negative watch.
The situation for Country Garden Services is compounded by Chinese courts freezing 63.68 million yuan worth of shares in two of its units. This comes as Country Garden Holdings (2007.HK), the nation’s largest private property developer and the sister company of Country Garden Services, grapples with its own challenges. In October, Country Garden Holdings missed a coupon payment, triggering default terms. Reports suggest the company is working on an offshore debt restructuring plan by the year’s end.
The spotlight on Country Garden started in August when its debt issues surfaced, sending shockwaves through markets and prompting Beijing to implement additional support measures for the beleaguered property sector. As the situation unfolds, the industry watches closely, navigating the intricate landscape of China’s property market challenges.
Also Read: Country Garden Fall from Grace: Unveiling Struggles Behind the Façade