China Builder Greenland Cut to Selective Default by S&P (1)

A Chinese state-linked developer long considered among the nation’s most resilient has been cut to selective default by S&P Global Ratings, as fallout from a property debt crisis spreads.

Greenland Holding Group Co. was downgraded from CC, after recently extending repayment by a year on a $488 million bond that had been due June 25. While the builder said last week that it had received sufficient support from noteholders for the extension, investors have remained concerned about its longer-term health amid a broader industry downturn.

The Shanghai-based firm would likely have lacked the funding to repay the notes without the ...