Fitch Ratings has downgraded longfor group (00960.HK) long-term issuer default rating from 'BB+' to 'BB', with a 'negative' outlook.

Fitch explained that the rating downgrade reflects longfor's reduced liquidity cushion due to weakening sales and cash flow generation, while the negative outlook reflects the risk that despite recent supportive measures by the central government, both longfor and the industry may take longer to stabilize sales.

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