Moody's downgrades China's Aoyuan from B2 to Caa2

The outlook is changed to negative as well

This follows a downgrade to Aoyuan from B1 to B2 on 5 November, with Fitch also having downgraded the property developer last week as mentioned here.

Moody's says that the downgrade reflects Aoyuan's "elevated liquidity and refinancing risks given its weakened funding access and sizable maturing debt over the next 6-12 months" with the negative outlook reflecting uncertainty of the firm to repay its debts.

Well, this just piles more misery on Chinese property developers and expect it to be an ongoing episode in the months ahead and next year as well.