Evergrande’s Second Downgrade in Two Days Raises Fear of Default
- Fitch lowers debt rating, saying default ‘appears probable’
- Moody’s also cut Evergrande this week as cash crunch worsens
The China Evergrande Centre in Hong Kong.
Photographer: Lam Yik/BloombergThis article is for subscribers only.
China Evergrande Group shares briefly fell below their 2009 initial public offering price after a second credit-rating downgrade in as many days boosted concern the developer will default on its debt.
The stock touched HK$3.46 on Wednesday morning in Hong Kong, breaching the HK$3.5 apiece offered on debut, before erasing the decline to trade unchanged at HK$3.57 at 10:41 a.m. Shares of the troubled developer have tumbled about 76% this year, while many of its dollar bonds are hovering below 30 cents.