Fitch alters Country Garden view to negative

Fitch Ratings said it revised the outlook on Country Garden Holdings Co. Ltd. to negative from stable and affirmed the foreign- and local-currency issuer ratings at BBB-. The agency also affirmed Country Garden's senior unsecured rating and the ratings on its notes at BBB-.

The negative outlook is driven by decreasing contracted sales and sales collection since 3Q21, as well as a declining profit margin of the sector. Country Garden has been able to access the capital market, but the difficult funding access and operating environment for Chinese property developers adds to uncertainties. The company's leverage is higher than that of most investment-grade peers,” Fitch said in a press release.

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