The move reflects ongoing troubles in China’s massive real estate sector, despite a trickle of local government announcements in the last few weeks aimed at encouraging more homebuying.
Moody’s cut its rating on Shimao by two notches, to Caa1 from B2 — both in the “non-investment grade” category. The ratings agency’s outlook on the developer is now negative, concluding a ratings review that began on Jan. 10.
