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R&F Properties Becomes The First Emerging Markets Default Of 2022, Article Says

NEW YORK (S&P Global Ratings) Jan. 24, 2022--R&F Properties (HK) Co. Ltd. is the first default from the emerging markets this year after completing a distressed exchange, said S&P Global Ratings in its article published today, "R&F Properties Becomes The First Emerging Markets Default Of 2022."

The speculative-grade 12-month-trailing default rate fell in emerging markets in 2021 to 1.7% as of Nov. 30, 2021, from 3.1% as of Dec. 31, 2020, as many emerging market economies returned to growth and credit conditions stabilized. However, a number of preexisting weaknesses and increasing post-pandemic challenges are threatening to undermine the economic recovery and accommodative financing conditions.

Additionally, pressure in the Chinese homebuilders and real estate sector has remained a major source of global defaults in recent months. "Since the beginning of fourth-quarter 2021, 43% of total global defaults (which have been low) have come from the homebuilders and real estate sector, driven by persistent issues affecting China's real estate developers," said Nicole Serino of S&P Global Ratings Credit Markets Research.

This report does not constitute a rating action.

The report is available to subscribers of RatingsDirect at www.capitaliq.com. If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-7280 or sending an e-mail to research_request@spglobal.com. Ratings information can also be found on S&P Global Ratings' public website by using the Ratings search box located in the left column at www.standardandpoors.com. Members of the media may request a copy of this report by contacting the media representative provided.

Credit Markets Research:Nicole Serino, New York + 1 (212) 438 1396;
nicole.serino@spglobal.com
Media Contact:Jeff Sexton, New York + 1 (212) 438 3448;
jeff.sexton@spglobal.com

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