Washington [US] October 21 (ANI): The US credit rating agency Moody's have downgraded the credit ratings of seven Chinese real estate giants due to concerns over liquidity risks.

The ratings of Greenland Holdings, Yango Group, China Aoyuan, Kaisa Group, Shinsun Holdings Group, R&F Properties and Zhongliang Holdings have been downgraded because of poor sales and financing prospects, YICAI reported citing Moody's.

Also Read | Gender Equality and Educational Opportunities Need To Be Addressed if Africa Is To Join the Global Physics Agenda To Tackle Issues Such As Climate Change.

The move has made it difficult for these Chinese companies to borrow money to repay their debts.

"The downgrading of a large number of real estate firms, some of which have relatively large assets, is an indication of the growing deterioration in their [companies'] credit quality," said Yan Yuejin, who is a research director at think tank E-house China R&D Institute.

Also Read | Taliban Beheaded Mahjabin Hakimi, A Member of Afghan Junior Women’s National Volleyball Team: Report.

Although there is still room for policy adjustments, it will take some time for new policies to take effect and boost corporate financial data, Yan added.

These multiple downgrades in rating will affect the financing activities of real estate firms, YICAI reported citing EH Consulting.

This lowered rating outlook directs that the company's financial indicators have deteriorated or are expected to deteriorate.

Meanwhile, Moody's move has also raised concerns about the increase in defaults by Chinese developers. (ANI)

(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)