S&P estimated that for every one percent decline of the yuan, mainland property developers' ability to repay debt would fall by 0.4 percent.
It said that mainland property prices have peaked, and predicted it to be flat or down 5 percent next year, with property sales volumes expected to plunge by 3 percent to 7 percent.
As of the end of September, mainland property companies on average reached 74.7 percent of their annual sales targets, significantly down from compared with 82.1 percent last year.
Meanwhile, S&P said that there are about 35 percent of the mainland property developers with over 30 percent foreign debt. The main challenge for the developers is refinancing.
The credit rating agency explained that many mainland property companies had issued bonds rating at B to raise funds, making it more difficult for other developers to find finance.
At the end of October, China Evergrande (3333) had issued US$1.8 billion bonds while Guangzhou R&F Properties (2777) announced earlier this month that it planned to issue no more than 805 million new H shares to raise money.
In other news, China Overseas Land and Investment (0688) announced its October contracted property sales rose by 44.37 percent yearly to HK$24.47 billion with a gross floor area of 1.3 million square meters, up 14.63 percent year on year.
China SCE Property (1966) said its October contracted sales rose by 28.94 percent monthly or 144 percent yearly to 5.69 billion yuan, with a contracted sales area of 452,742 sq m, up 7.62 percent monthly, or 243 percent yearly.
Contracted sales from January to October were over 39.2 billion yuan, up 54 percent from last year.
Shui On Land (0272) reported that its October contracted sales amounted to 573 million yuan.