There’s a new Evergrande every day now. Friday’s was Yango:
Fitch Ratings has downgraded China-based property developer Yango Group Co., Ltd.’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘B-‘ from ‘B+’. The Outlook is Negative. Fitch has also downgraded Yango’s senior unsecured rating to ‘B-‘ from ‘B+’ and maintained the Recovery Rating at ‘RR4’. Fitch has removed all the ratings from Under Criteria Observation (UCO), which they were placed on 20 October 2021.
The downgrade reflects Yango’s weakened access to funding, increasing liquidity pressure due to large short-term capital-market instrument maturities, and diminishing financial flexibility to keep a stable business profile. The Negative Outlook reflects Fitch’s view of the uncertainty over Yango’s liquidity and the stability of the company’s sales proceeds amid a market slowdown.
