News
James B. Bell
- November 13, 2023
By Sherry Qin
Fitch Ratings has made the decision to withdraw all ratings on Country Garden Services (CGS) next month, following its recent downgrade of the sister company, Country Garden Holdings - a troubled Chinese property giant.
The ratings agency announced on Monday that it will no longer cover CGS as of December 12th for "commercial reasons," although no further details were provided.
In August, Fitch downgraded CGS from BBB- to BB+, citing concerns over its profitability and funding access due to heightened liquidity pressure at its sister company. Simultaneously, Fitch placed the company on "rating watch negative," indicating the potential risk of liquidity and working capital erosion.
Country Garden Holdings, as reported by The Wall Street Journal, currently has over $15 billion in international bonds and loans outstanding. Last month, the company missed a final deadline to pay interest on an offshore bond.
Despite these challenges, CGS announced in August that it was in a strong financial position following a rise in sales during the first half of the year.
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