Fitch prunes Poly and Hengli HK unit

Fitch Ratings said it downgraded the long-term foreign-currency issuer default ratings of Poly Developments and Holdings Group Co., Ltd., and its wholly owned subsidiary, Hengli (Hong Kong) Real Estate Ltd. to BBB from BBB+.

“The downgrade captures our view that Poly's leverage may stay above 45%, the previous negative rating trigger, for a prolonged period,” Fitch said in a press release.

The agency noted it now sees Chinese new home sales dropping by up to 15% in 2023 versus the previous 5% decline it forecasted.

The outlook is stable.

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