China Vanke Cut to Selective Default by S&P After Bond Reprieve

S&P Global Ratings downgraded China Vanke Co. to selective default on Tuesday, labeling the developer’s recent onshore bond extension as a distressed debt restructuring tantamount to a default.

The move to SD from CCC- in long-term rating follows a narrow reprieve on Monday, when holders of a 2 billion yuan ($284 million) note voted to extend a grace period to Jan. 28. However, creditors rejected Vanke’s proposal to defer principal payment for a year, leaving the state-backed builder lurching toward eventual default or restructuring.