Aoyuan downgraded from 'B-' to 'CCC-'

On the downgrade, Fitch says that it reflects the diminishing likelihood of Aoyuan refinancing its $688 million public senior notes due January 2022 after the company extended the redemption date of its Aochuang II asset-backed securities and appointed a financial adviser and a legal adviser. In other words, it presents a high refinancing risk.

For some context, Aoyuan has $188 million bonds maturing on 20 January 2022 and $500 million bonds maturing on 22 January.

And for some background, Aoyuan is one of Guangzhou's largest property developers so this compounds worries surrounding the property market sector in China at the moment.