(Bloomberg) — Country Garden Holdings Co. was downgraded three notches by Moody’s Investors Service to Caa1 from B1 in the wake of this week’s missed dollar-bond coupon payments.
“The downgrade reflects Country Garden’s heightened liquidity and refinancing risks in view of its deteriorated liquidity and financial flexibility, sizable refinancing needs and still-constrained access to funding,” senior vice president Kaven Tsang said in a statement.
The builder has left investors in the dark after dollar bondholders said they’ve yet to receive coupon payments that were effectively due Monday. That puts the firm — which had 1.4 trillion yuan ($199 billion) of total liabilities at the end of last year — on course for its first public default if it doesn’t make the payments within a 30-day grace period.
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