Guangzhou R&F Properties was downgraded to SD from CC by S&P. This comes on the back of R&F Properties’ completing a bond maturity extension on its RMB 1.95bn ($310mn) onshore corporate bond due April 7, 2022. S&P also maintained a negative outlook reflects noting that the developer is “highly vulnerable to default”, especially on dollar bond due July. R&F Properties also delayed publishing its audited financial results showing weak internal controls. The developer has RMB 8bn ($1.3bn) of onshore bonds maturing/puttable in the year and offshore bonds over $ 1.2bn during the rest of 2022.
R&F Properties’ dollar bonds issued by Easy Tactic were trading flat at 26-28 cents on the dollar.