A Slew of China Builders Gets Ratings Dropped as Crisis Worsens

  • Fitch, Moody’s withdrew at least 7 builders’ ratings this week
  • Lack of information or participation cited as reasons for exit
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Two of the world’s top credit rating firms are fast exiting the business of assessing Chinese developers, citing inadequate information from the companies as the sector’s debt crisis intensifies.

Fitch Ratings and Moody’s Investors Service have withdrawn ratings on at least seven builders this week. They include CIFI Holdings Group Co. and Seazen Group Ltd., both of which were part of a select group of developers to recently sell debt with state guarantees. Others with withdrawn ratings include defaulted developers China Evergrande Group and Kaisa Group Holdings Ltd.