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China Real Estate Developer Fantasia’s Credit Rating Cut To Default

By News Creatives Authors , in Billionaires , at October 6, 2021

China real estate developer Fantasia Holdings credit rating was lowered to default by Fitch on Tuesday evening. (See announcement here.)

Fantasia Holdings said late Monday it hadn’t repaid $206 million in debt due that day.

Earlier on Monday, Fitch Ratings downgraded Fantasia’s rating to ‘CCC-‘ from ‘B’ after it was reported in the media that Fantasia missed the payment on a $100 million bond issue due on Sept. 28.  “The bond was guaranteed by the company, but it does not appear to have been disclosed in the company’s financial reports,” Fitch said. (See earlier post here.)

The company has $1.9 billion of offshore bonds and 6.4 billion yuan of onshore debt due or puttable by the end of 2022, according to Fitch.

Shenzhen-headquartered Fantasia’s woes come as China Evergrande Group, the world’s most indebted real estate developer with more than $305 billion of debt, has failed to make payments due creditors, roiling capital markets globally. Hong Kong-traded shares in China Evergrande and its services arm Evergrande Property Services were suspended in Hong Kong on Monday amid reports that China developer Hopson Development, controlled by billionaire Chu Mang Yee, would buy 51% of Evergrande Services.    None of the three has made a further announcement.

Fantasia’s shares have been suspended since Sept. 29 at the Hong Kong Stock Exchange.

See related posts:

Investors May Be Further “Left Smarting” After Evergrande As China Retools Economic Policy

China Real Estate Stocks Pummeled in Hong Kong; Alibaba Falls Again, Coal Gains

Fantasia Didn’t Pay $206 Mln Due On Oct. 4, Adding To China Real Estate Woes



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