Shimao Downgraded by Moody’s, Fitch on Increased Financing Risks

Shimao Downgraded by Moody’s, Fitch on Increased Financing Risks
A wall carrying the logo of Shimao Group in Shanghai, China, on Jan. 1, 2013. Stringer/Reuters
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SHANGHAI/HONG KONG—Shimao Group Holdings Ltd. was downgraded by rating agencies Moody’s and Fitch on Friday, both by two notches, due to the Chinese developer’s increased financing risks.

The downgrades could trigger some creditors to demand immediate repayment, market watchers cautioned, further pressuring Shimao’s liquidity.