S&P Global Ratings has placed China Vanke's (HKG:2202, SHE:000002) B- long-term issuer credit ratings on CreditWatch with developing implications, citing its new management and how it will handle liquidity concerns.

Secured shareholder loans from Shenzhen Metro Group amounting to 7 million yuan provide some refinancing relief, but S&P deems them insufficient to tackle the property developer's liquidity problems fully.

The rating agency sees the company's credit profile improving if it receives timely and sufficient liquidity support, according to a Wednesday release.

Without this support, the company faces increasing liquidity challenges, especially with a projected net operating cash outflow in the first quarter of 2025 due to weakened contracted sales and payable settlements for this period, S&P said.

The CreditWatch resolution as well as future rating actions will depend on clarity regarding management strategies, including potential support from Shenzhen Metro Group, noncore asset disposals, and asset-pledged borrowings, the rating agency said.