SHANGHAI/HONG KONG—Shimao Group Holdings Ltd. was downgraded by rating agencies Moody’s and Fitch on Friday, both by two notches, due to the Chinese developer’s increased financing risks. The downgrades could trigger some creditors to demand immediate repayment, market watchers cautioned, further pressuring Shimao’s liquidity. Separately, S&P downgraded China Evergrande Group to “selective default” on Friday, and Moody’s and Fitch downgraded Guangzhou R&F Properties to Caa2 from B3, and C from B-, respectively. Evergrande, which has more than $300 billion in liabilities, missed a debt payment deadline last week, putting the developer at risk of becoming the country’s biggest defaulter. Fitch has already downgraded the developer to “restricted default.” Chinese developers are facing an unprecedented liquidity squeeze due to regulatory curbs on borrowing, causing a string of offshore debt defaults, credit-rating downgrades, and sell-offs in developers’ shares and bonds. On Friday, Moody’s downgraded Shimao’s corporate family rating (CFR) to Ba3 from …
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