Fitch plans to withdraw ratings of Country Garden Services By Reuters

© Reuters. The company logo of Chinese developer Country Garden is pictured at the Shanghai Country Garden Center in Shanghai, China August 9, 2023. REUTERS/Aly Song/file photo

(Reuters) – Global ratings agency Fitch said on Monday it plans to withdraw all ratings of China’s Country Garden Services Holding on or around Dec. 12, citing commercial reasons.

“Fitch believes that Country Garden Services investors benefit from increased rating coverage by Fitch and is providing the market with approximately 30 days’ notice of any withdrawal of the rating,” the rating agency said in a statement on Monday. a statement.

Fitch had downgraded Country Garden Services to BB+ and placed its rating on negative watch last week.

Chinese courts have ordered the freezing of shares worth 63.68 million yuan in two units of Country Garden Service, a sister company of Chinese real estate giant Country Garden Holdings, the country’s largest private property developer.

Country Garden Holdings missed its coupon payment in October, triggering default conditions. Reuters previously reported, citing sources, that the company aimed to have a plan to restructure its offshore debt in place by the end of the year.

Country Garden has been in the spotlight since August, when its debt problems were made public, rattling markets and forcing Beijing to roll out more support measures for the country’s struggling real estate sector.

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