Standard & Poor's has downgraded 13 Chinese companies this year
- Has upgraded one
- Bloomberg report that's the worst ratio in Bloomberg data going back to 2006
- Around $22.6 billion of offshore bonds are now rated one step above junk by any of the three major rating agencies
"I won't be surprised to see more companies downgraded to junk," said Raymond Chia, head of credit research for Asia ex-Japan in Singapore at Schroder Investment Management Ltd. with assets of about $446.5 billion under management. "Clearly fallen angels have impact on markets, for instance funds with high-grade mandates could be forced to reduce junk holdings. Most importantly, investors have to do a lot more fundamental work for those names."
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The bad China news just keeps on piling up. Though it not really new news.
