Zhenro Under Scrutiny; Developer Stocks Slide: Evergrande Update

Zhenro Properties Group Ltd. dollar bonds and shares extended declines Monday after plunging last week on concerns about the planned redemption of a note.

Moody’s Investors Service slashed the builder’s credit rating two notches deeper into junk to B3 and lowered its rating outlook to negative. The move reflects “Zhenro’s heightened refinancing and default risks because of its weakened operations, deteriorated funding access and sizable debt maturities over the next 12 months,” analysts wrote in the report on Monday.