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Evergrande Declared in Default by S&P for Failed Coupon Payments

  • Move to cut developer follows earlier downgrade by Fitch
  • Officials have made it clear Beijing won’t bail out the firm
China Evergrande Group's Sea Venice Development
Photographer: Qilai Shen/Bloomberg

China Evergrande Group was labeled a defaulter by S&P Global Ratings, the second credit-risk assessor to do so.

S&P Global cut Evergrande to “selective default” over its failure to make coupon payments by the end of a grace period earlier this month, a move that may trigger cross defaults on the developer’s $19.2 billion of dollar debt. S&P Global also withdrew its ratings on the group at Evergrande’s request.