Shimao Selloff Deepens After Downgrade: Evergrande Update
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Shimao Group Holdings Ltd.’s dollar bond losses slumped Thursday as the Chinese property developer missed some trust payments and suffered a fresh credit rating downgrade.
The developer’s 4.75% note due July tumbled 12.4 cents on the dollar and was headed for a record closing low. Shimao’s long-term corporate family rating was dropped deeper into junk by Moody’s Investors Service, to a level that may prompt forced selling by investors unable to hold such-rated debt. Dollar notes issued by peer Logan Group Co. also plunged, poised to set all-time lows and record declines themselves.