CIFI Holdings Faces Rising Debt Payment Uncertainty

Concerns about CIFI’s financial health are the latest blow to private-sector property companies plagued by record levels of bond defaults and slumping home sales this year

(Bloomberg) — A Chinese developer that until recently was able to access state-backed funding faces rising concerns as a bond payment comes due, underscoring authorities’ challenge to staunch a property debt crisis without a substantial sectorwide recovery.

Fitch Ratings slashed Shanghai-based CIFI Holdings Group Co. to CC from BB- Wednesday, citing uncertainty about timely debt-servicing abilities at the country’s 15th-largest developer. The downgrade and subsequent withdrawal of Fitch’s ratings came the same day that CIFI has a $9.14 million bond interest payment due, according to data compiled by Bloomberg.