China Lianhe Rating Co has downgraded the issuer and bond credit rating of Sincere Property’s five corporate bonds to AA- from AA.

Sincere Property is a joint venture (JV) of property group City Developments Limited (CDL).

The bonds, which total some RMB3.04 billion ($622.3 million), will mature in 2021.

The bond issues were made before CDL’s investment in Sincere on April 2020.

The credit rating downgrade has no impact on CDL’s borrowings; the group is not committed to the obligations of these bonds.

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As at Dec 31, 2020, CDL’s total investment in Sincere Property stood at $1.8 billion. The group has not provided further liquidity support or corporate guarantees to Sincere Property.

Shares in CDL closed 1 cent higher or 0.1% up at $7.13 on Feb 19.

See: Is CDL oversold following the family disagreements over Sincere and M&C?