Moody's eyes China Vanke for downgrade

Moody's Investors Service said it placed the following ratings of China Vanke Co., Ltd. and its wholly-owned subsidiary, Vanke Real Estate (Hong Kong) Co. Ltd., on review for downgrade. Previously, the outlooks for the entities were stable.

"The review for downgrade reflects high uncertainties over the company's ability to recover its weakened contracted sales and credit metrics, amid uncertain recovery prospects for China's property market, as reflected in our negative outlook for the sector," said Kaven Tsang, a Moody's senior vice president, in a press release.

"The projected weakening in financial metrics and reduction in financial buffers resulting from its declining contracted sales amid a more difficult operating environment will pressure its rating," Tsang added.

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