S&P Global Ratings downgraded Hopson Development Holdings' (HKG:0754) long-term issuer credit rating to CCC from B while subsequently withdrawing the rating at the issuer's request, according to a Tuesday release.

The downgrade was due to the property developer's looming liquidity crisis and potential default within a year, triggered by cross-default clauses on HK$9.3 billion in loans due to subsidiary loan nonpayment, S&P said.

The rating action reflects Hopson's limited cash reserves of HK$8.5 billion against HK$25 billion in short-term debt.

The company also has a projected ratio of liquidity sources to uses of 0.59x for the 12 months ending Dec. 31, 2025, indicating weak liquidity.

S&P had a negative assessment of the company's management and governance due to credit risk management failures under property market pressures.

The prior negative outlook signaled a high risk of default or distressed restructuring within 12 months, absent unforeseen positive developments, S&P said.