Analyst Note
| Denise Molina, CFA |Should the Chinese property market spiral into lower property prices and sales and a broader developer liquidity crunch as a result of Evergrande's potential collapse, we believe the near-term credit loss risk for European capital goods suppliers will be moderate and manageable. From a valuation standpoint, the greater risk is a step down in medium-term Chinese property market growth prospects if banks tighten lending to property developers. For now, however, we are making no changes to our ratings or valuations.