Markets
Evergrande Declared in Default as Huge Restructuring Looms
- Rating cut to restricted default by Fitch after missed coupons
- Fitch also downgrades Kaisa after $400 million bond unpaid
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China Evergrande Group has officially been labeled a defaulter for the first time, the latest milestone in months-long financial drama that’s likely to culminate in a massive restructuring of the world’s most indebted developer.
Fitch Ratings cut Evergrande to “restricted default” over its failure to make two coupon payments by the end of a grace period on Monday, a move that may trigger cross defaults on the developer’s $19.2 billion of dollar debt.