Moody’s: Refinancing risks will rise for Chinese property developers

China Evergrande building in HK

KUALA LUMPUR: Chinese property sector’s tight credit environment, exacerbated by China Evergrande Group’s (Ca negative) credit distress, will increase refinancing risks for developers, Moody’s Investors Service says.

“Weak investor sentiment in a tight credit environment will increase refinancing risk for the sector, particularly for financially weak developers because they will have less flexibility to deploy financial resources,” says Celine Yang, a Moody’s vice president and senior analyst.