Greenland Holdings was downgraded to CC from CCC- by S&P, and its senior bonds to C from CC. The downgrade comes on the back of the company’s consent solicitation this week to extend the maturity of nine of its dollar bonds as it expects to default on its dollar bond due on November 13. S&P considers the proposed maturity extensions as distressed and said that the transaction would be  “tantamount to a default”. Greenland’s contracted sales are down 57% YoY in 9M2022 to RMB 99bn ($13.6bn). S&P adds that Greenland will find it difficult to access its RMB 61bn ($8.4bn) in cash balances as regulators’ focus has been for developers to finish projects.

Greenland’s 5.6% dollar bond due November 13 are trading at 1.9 points lower at 18 cents on the dollar

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