Rating agency Standard and Poors cut Sinic Holdings to CCC
- says the firm has not communicated a clear repayment plan
- timing of any remittance is uncertain
Placed on CreditWatch Negative.
I posted S&P thoughts on Evergrande earlier:
A little more on this now:
- Does not expect the Chinese govt to provide any direct support to Evergrande group
- "we believe Beijing would only be compelled to step in if there is a far-reaching contagion causing multiple major developers to fail and posing systemic risks to the economy
- "we anticipate Evergrande's direct negative effects on other major players' projects would be manageable, even in a default scenario"
- "we believe the Chinese banking sector can digest an Evergrande default with no significant disruption, although we will be mindful of potential knock-on effects"
The Hang Seng index in HK has stabilised somewhat after a shaky start to the session. Mainland China markets are on holiday again today after the holiday Monday. They return Wednesday.