(Reuters) – Ratings agency Moody’s on Thursday revised its outlook on four Chinese real estate firms to “negative” from “stable”, as the country’s property sector reels from mounting debt.
The agency’s action comes just a week after it revised the outlook on the country’s crisis-hit property sector to “negative”, citing growth-related challenges.
The outlook change on real estate firms reflects uncertainties over their ability to achieve stable operating performance and credit metrics to support its ratings over the next 12-18 months, Moody’s said in separate statements.
The revisions were on China Overseas Grand Oceans Group, Yuexiu Property, China Overseas Land and China Resources Land.
The country’s property sector has been in turmoil ever since China Evergrande defaulted on its debt obligations in 2021.
The industry once contributed about 25% to the country’s gross domestic product before being battered by a government crackdown and collapse in home sales over the last couple of years.
Earlier this week, Chinese developers Sunac and Country Garden forged debt deals with creditors. China Evergrande is still seeking to restructure a total of $31.7 billion in debt.
(Reporting by Raechel Thankam Job and Shashwat Awasthi; Editing by Anil D’Silva)
