Di Yi Cai Jing·2025-12-03 05:00Core Viewpoint - Vanke's bonds are under pressure as Fitch Ratings places its long-term foreign and local currency issuer default ratings at "CCC-" on negative watch, indicating rising risks of distressed debt exchange [1] Group 1: Rating Actions - Fitch Ratings has placed Vanke's long-term foreign and local currency issuer default ratings at "CCC-" on negative watch [1] - The negative watch follows Vanke's announcement of a bondholder meeting to discuss the extension of a 2 billion RMB domestic bond maturing on December 15 [1] Group 2: Market Reaction - Vanke's bonds initially rebounded in early trading but subsequently showed a gradual decline [1] - Recent volatility in Vanke-related bonds has been significant, reflecting market concerns over the company's financial stability [1] Group 3: Implications of Debt Exchange - Fitch believes that the upcoming bondholder meeting indicates an increased risk of distressed debt exchange, which could lead to significant reductions in original terms [1] - Such actions may allow the issuer to avoid a potential default, but according to Fitch's corporate rating standards, this could be considered a form of distressed debt exchange [1]