Fitch reports that it downgraded the long-term foreign currency and local currency issuer entity rating of Vanke Enterprise Co., Ltd. from “CCC-” to “C” and downgraded the long-term issuer entity rating of its wholly-owned subsidiary Vanke Real Estate Co., Ltd. from “CCC-” to “CC”. Fitch also downgraded Vanke Hong Kong's Premium Unsecured Rating and its outstanding senior notes from “CC” to “C” and the recovery rate rating to “RR5.” Fitch has removed all ratings from negative review status. The rating downgrade is based on Vanke entering a grace period of 5 working days for principal and interest payments on a RMB 2 billion domestic bond due on December 15, 2025. This incident shows that Vanke's risk of default is rising. The company was unable to reach an agreement with bondholders on a bond rollover plan at the December 10 meeting and is expected to hold another bondholders' meeting during the grace period.

Fitch reports that it downgraded the long-term foreign currency and local currency issuer entity rating of Vanke Enterprise Co., Ltd. from “CCC-” to “C” and downgraded the long-term issuer entity rating of its wholly-owned subsidiary Vanke Real Estate Co., Ltd. from “CCC-” to “CC”. Fitch also downgraded Vanke Hong Kong's Premium Unsecured Rating and its outstanding senior notes from “CC” to “C” and the recovery rate rating to “RR5.” Fitch has removed all ratings from negative review status. The rating downgrade is based on Vanke entering a grace period of 5 working days for principal and interest payments on a RMB 2 billion domestic bond due on December 15, 2025. This incident shows that Vanke's risk of default is rising. The company was unable to reach an agreement with bondholders on a bond rollover plan at the December 10 meeting and is expected to hold another bondholders' meeting during the grace period.