Central China Real Estate (CCRE) was downgraded to CCC- from CCC+ by S&P after it missed a $7.9mn coupon payment on November 7. The bond in question was its $200m 7.9% 2023s. While the developer said that it planned to make the payment within the 30-day grace period, S&P believes that there is uncertainty over the company’s ability to make good on the payment. The developer has $900mn in bonds maturing in April, August, and November 2023 with $73mn in coupons due next year. CCRE’s contracted sales were down 56% YoY for the ten months ending October.
CCRE’s dollar bonds were trading flat at 10-14 cents on the dollar.