On its building in Beijing, the sign of Greenland Holdings Corp. Ltd. is seen.
HONG KONG Reuters - S&P Global Ratings raised the Greenland Holdings Corp Ltd by one notch to CCC after the Chinese state-backed property developer completed a one-year maturity extension on $500 million in senior unsecured notes.
Last Wednesday, S&P downgraded Shanghai-based Greenland to a selective default after the firm proposed and later completed a one-year maturity extension of its $500 million bonds originally due on June 25.
The rating agency viewed the proposal to extend the maturity as a distressed debt restructuring and tantamount to a default On Wednesday while upgrading the Greenland rating on completion of the maturity extension. S&P said that the developer continued to face heightened repayment risk due to a large amount of debt maturities in 2022 and its exceptionally weak liquidity.
Greenland didn't want to comment on the latest rating action.
The rating agency said that payment for Greenland's remaining U.S. dollar-denominated senior notes due in 2022 is subject to high uncertainty.
Over the next 12 months, Greenland has had debt maturities of $2.4 billion, according to S&P estimates. It said that greenland's repayment ability will depend on cash collection from sales and asset disposals.
A string of Chinese property developers have defaulted on their offshore debt obligations and have had their ratings slashed in the last year because of an unprecedented liquidity squeeze and slowing sales.