(Bloomberg) -- S&P Global Ratings downgraded China Vanke Co. to junk, underscoring mounting pressure on the state-backed developer as it faces a cash crunch and increased scrutiny from investors.

S&P lowered the company’s credit score to BB+ with negative outlook, it said in a statement on Wednesday. Moody’s Ratings and Fitch Ratings also downgraded China Vanke to junk recently.

While China Vanke has sufficient cash and access to liquidity sources to address debt maturities this year, weakening property sales and margins will undermine its competitiveness, S&P said. The company’s longer-term financial position could also worsen if it is unable to carry out planned asset sales, S&P said. 

China Vanke’s shares slid to the lowest in a decade Wednesday after the developer said a regional manager is involved in a probe over “personal reasons.” 

The company’s shorter-dated dollar bonds due June are quoted at around 94 cents, signaling strong expectations of repayment, while notes due in 2027 are quoted at a discount of almost 50% from face value, pricing compiled by Bloomberg shows.

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