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00:00So it was Moody's yesterday. Fitch today effectively though whatdoes it mean or is it simply a statement of fact already. Well it is certainly hard to see where we go from here.There are very few companies that hit these type of low low ratings that recover without going through some kind ofrestructuring process. Fitch of course following hard on the heels of Moody's that with a downgrade. I think realistically alot of this of course will have been priced in. Fitch is saying explicitly there is a likelihood of probable default which is avery robust statement to come from a rating. It really is. And this is really sort of sticking their hand in the effort changehere as well. But the company itself did warn of defaults last week didn't it. They were saying that they needed to actuallyraise cash. And that's their fundamental issue. Actions by Moody's and Fitch say this certainly didn't make thattask easier. No. And Fitch is sort of rightly highlighted this issue of the slow process and the lack of process of progress onits asset disposals. And as you say the home critical issue here is how quickly can ever ground raise that cash. It has warned ofdefault if it cannot raise cash quickly enough to pay off some of these short term shorter term maturities it has which it hascoming up. And you know before we have that March 20 22 eminent kind of payment that will of course be a host of things likecommercial bills short term paper and payments. Oh just implies. And contractors that need to be serviced. In the meantime the.Well I wanted to talk about the broader implications of this because obviously 25 cents on the dollar. We know that. Two partquestion. S & P global ratings. Are they next. Likely to be next. Maybe. Yeah. That's certainly what folks will be watching fornow. I think for the most part getting that we've seen Moody's andFitch. Right. Most of that will have been priced in very quickly on the high yield space because there's another company that weshould be paying attention to today. Guangzhou R & F. Absolutely. Yes. Another company from same province as Evergrande that we're seeing investors really worried about essentially worried about its ability to service its imminentlymaturing debt. That as cash flows dwindle.

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Fitch Follows Moody's in Cutting China Evergrande

China Evergrande Group’s credit rating has been cut to CC from CCC+ by Fitch Ratings. The move comes two days after the world’s most indebted developer was cut to Ca from Caa1 by Moody’s Investors Service. Rebecca Choong Wilkins reports on "Bloomberg Markets: Asia." (Source: Bloomberg)

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