Fitch the latest to pile on more misery on Kaisa
On the downgrade, the ratings agency says that it believes Kaisa's credit risk is high due to tight liquidity and undisclosed debt from its wealth management products.
Adding that it believes the recent drop in contracted sales has weakened Kaisa's ability to repay its short-term debt. For some context, the previous downgrade to 'CCC+' was back on 27 October so that shows the extent of the perceived credit deterioration.
It wasn't so long ago back in April that Fitch reaffirmed Kaisa at 'B'. Yikes.
Again, this is one to be wary about as it just adds more pressure on China's property sector - which is coming under intense scrutiny since the Evergrande fiasco.
