According to Moody’s Investors Service, China’s problems with property will hinder developers’ access to U.S. credit markets.

Annalisa di Chiara, senior vice president of Moody’s said Monday that “we are seeing the trend in China property turmoil continuing to dampen excitement for some high-yield issuers.”

She said that China’s property developers hold about $35 billion in U.S. dollars-denominated bonds due to mature this year.

Di Chiara stated, “If we were able to remove the refinancing requirements for issuers who have defaulted already, it would probably net about $15 billion from that $35 billion.” There is a total of $20 billion that China’s property owners need to refinance.

She said that tight funding conditions would continue to make it difficult for issuers to get access to the U.S. bond market because of the current situation.

The deterioration of China’s real estate sector was partly to blame. debt crisis at Evergrande — once China’s second-largest property developer by sales. It has accumulated debts in excess of $300 billion and is currently struggling to repay creditors. 

As the debt woes within China’s real estate sector have mountedEvergrande and other developers have attempted to liquidate their assets over the past few months in an effort to alleviate cash crunch.

Evergrande shares have taken a big hit since the announcement of its recent acquisition. restructuring roadmapInvestors are disappointed

Di Chiara stated, “Some of these companies need to be able access the U.S. Dollar bond market, return some of their liquidity, and see some stabilization again in that property sector.”

“I believe that Evergrande will be restructured in a transparent manner, which should give investors some comfort,” she stated.