FXStreet reports that the Fitch Ratings assessed the impact of potential default by China Evergrande on rated Chinese construction issuers.
“The impact from a China Evergrande Group (CC) credit event on rated Chinese construction issuers will be manageable because they have limited exposure to Evergrande.”
“The scale advantage of Fitch-rated engineering and construction (E&C) companies mitigates their risk of a single customer default or project failure incident.”
“That said, E&C companies with material exposure to housing projects and property development business may be affected in the unlikely event that a default disrupts the broader property market.”
“We expect the potential effect of a slowdown in property market to be partially offset by a revival in the infrastructure business.”
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