Market

Evergrande has been demoted to restricted default status.

China Evergrande Group’s rating was lowered by Fitch Ratings after it missed an interest payment on two batches of notes a few days ago.

Source: Nikkei Asia

Fitch Ratings stated today that it had lowered the ratings of China Evergrande Group and its affiliates Hengda Real Estate Group and Tianji Holding from C to RD (Restricted Default). According to Fitch, this action involves the company’s failure to pay interest on two batches of Tianji bonds due on November 6 and grace on December 6.

This is the company’s first default on a dollar-denominated bond. According to Bloomberg, this development marks the end of the real estate behemoth created 25 years ago by billionaire Hui Ka Yan. It is also the most challenging task facing the Chinese government in its efforts to prevent the real estate debt crisis from spreading to other areas.

The real estate giant was in debt to the tune of more than $300 billion as of June. They intend to “actively discuss” restructuring with international creditors. Bondholders who possess $ 19.2 billion of Evergrande’s US dollar-listed bonds may suffer significant losses due to the government’s reluctance to intervene.

Nonetheless, Chinese officials are getting involved. The Guangdong government, where Evergrande is located, summoned Hui Ka Yan after the business stated its intention to negotiate with creditors on a restructuring plan. Authorities will deploy an action team to Evergrande to encourage them to minimize risks, tighten internal controls, and maintain regular operations. Evergrande stated earlier this week that the administration now has the majority of seats on the new board of risk management.

Patrick

Coincu News

Victor

Recent Posts

PropiChain’s Token Presale Turns Heads as the First DeFi Platform to Merge NFTs with AI 

The hype around PropiChain’s token presale is due to its innovative integration of NFTs and…

2 hours ago

UK Pension Fund Cartwright Encourages 3% Allocation to Bitcoin Investment

UK pension fund Cartwright advised the country's first defined benefit pension fund to allocate 3%…

4 hours ago

Crypto PAC Fairshake Continues to Boost 2026 Election With Support from a16z

a16z and Coinbase have pledged substantial funds to crypto PAC Fairshake, aiming to support crypto-friendly…

5 hours ago

Bitcoin, Ethereum, And Solana Lead Crypto Market, But Not For Long With New AI Altcoin With 30,000% Potential, Expert Says

Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) dominate the crypto market, but experts warn that…

8 hours ago

Dogecoin Price Prediction: Will DOGE Ever Hit $0.7 Again? Why ETFSwap (ETFS) Is The Best Alternative For 100x Gains

Discover the future as the Dogecoin price aims for a $0.7 comeback and discover why…

11 hours ago

This website uses cookies.