S&P Global has downgraded China Vanke to CCC- from CCC, warning that the developer’s plan to seek maturity extensions on its onshore debt indicates heightened liquidity stress. The rating has been placed on CreditWatch Negative, signalling further cuts are possible.
The move follows the collapse in Vanke’s yuan bonds — including the 2027 note that plunged to 31/100 and triggered trading halts — underscoring how the once-blue-chip developer has been pulled deeper into China’s property-sector crisis. S&P said the potential extension is tantamount to distress and reflects a “material likelihood of default” unless significant support emerges.
