Research Update: Evergrande And Subsidiaries Downgraded To 'B-' On Weakening Funding Access; Outlook Negative - S&P Global Ratings’ Credit Research

Research Update: Evergrande And Subsidiaries Downgraded To 'B-' On Weakening Funding Access; Outlook Negative

Research Update: Evergrande And Subsidiaries Downgraded To 'B-' On Weakening Funding Access; Outlook Negative - S&P Global Ratings’ Credit Research
Research Update: Evergrande And Subsidiaries Downgraded To 'B-' On Weakening Funding Access; Outlook Negative
Published Jul 26, 2021
10 pages (3941 words) — Published Jul 26, 2021
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

We believe China Evergrande Group's weakening funding access will hamper its liquidity position and its ability to reduce debt in an orderly manner, which poses considerable risks amid credit tightening in the overall market. The China-based property developer's credit profile is also dragged down by what we believe to be a severe decline in profitability, as it needs to use more aggressive price promotions to drive sales and cash collection. On July 26, 2021, S&P Global Ratings downgraded Evergrande, Hengda Real Estate Group Co. Ltd., and Tianji Holding Ltd. to 'B-' from 'B+'. We also lowered our long-term issue rating on the U.S.-dollar notes issued by Evergrande and guaranteed by Tianji to 'CCC+' from 'B'. The negative outlook reflects the

  
Brief Excerpt:

...- We believe China Evergrande Group's weakening funding access will hamper its liquidity position and its ability to reduce debt in an orderly manner, which poses considerable risks amid credit tightening in the overall market. - The China-based property developer's credit profile is also dragged down by what we believe to be a severe decline in profitability, as it needs to use more aggressive price promotions to drive sales and cash collection. - On July 26, 2021, S&P Global Ratings downgraded Evergrande, Hengda Real Estate Group Co. Ltd., and Tianji Holding Ltd. to 'B-' from 'B+'. We also lowered our long-term issue rating on the U.S.-dollar notes issued by Evergrande and guaranteed by Tianji to '###+' from 'B'. - The negative outlook reflects the increasing risk that Evergrande's funding access may continue to deteriorate and that potentially significant margin erosion may further drag down its credit profile....

  
Report Type:

Research Update

Ticker
EGRNF
Issuer
China Evergrande Group
Sector
Global Issuers, Structured Finance
Country
Cayman Islands
Region
Latin America
Format:
PDF Adobe Acrobat
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S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Evergrande And Subsidiaries Downgraded To 'B-' On Weakening Funding Access; Outlook Negative" Jul 26, 2021. Alacra Store. Apr 25, 2024. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Evergrande-And-Subsidiaries-Downgraded-To-B-On-Weakening-Funding-Access-Outlook-Negative-2694237>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Evergrande And Subsidiaries Downgraded To 'B-' On Weakening Funding Access; Outlook Negative Jul 26, 2021. New York, NY: Alacra Store. Retrieved Apr 25, 2024 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Evergrande-And-Subsidiaries-Downgraded-To-B-On-Weakening-Funding-Access-Outlook-Negative-2694237>
  
US$ 225.00
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