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Fitch Ratings on Monday downgraded China’s Guangzhou R&F Properties Co Ltd. and its unit R&F Properties (HK) to “restricted default” (RD), one notch above “default”, after the property developer extended maturities for its offshore bonds.

Last week, R&F received consent from its creditors to extend maturities for $4.9 billion worth of offshore bonds, the latest such move by a Chinese developer to avoid default.

In assigning the restricted default rating, Fitch said approval from creditors was necessary for the company to avoid default given its limited liquidity.

Restricted default ratings indicate an uncured payment default or distressed debt exchange on a bond, without the entity entering into bankruptcy or other formal winding-up procedure.

A growing nationwide homebuyers’ boycott has rekindled investor concerns about China’s slumping property sector, which accounts for a quarter of the economy, and raised fears banks could face hefty writedowns.

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