China Evergrande enters default after failing to make coupon payment

Dec. 09, 2021 10:17 AM ETChina Evergrande Group (EGRNY), EGRNFBy: Liz Kiesche, SA News Editor22 Comments
  • China Evergrande (OTCPK:EGRNF +2.8%) (OTCPK:EGRNY +2.7%) officially defaults as Fitch Ratings cut the company's debt rating to "restricted default" after it failed to make two coupon payments by the end of a grace period on Monday.
  • The ratings downgrade applies to the long-term foreign-currency issuer default rating of Evergrande's (OTCPK:EGRNF) and its subsidiaries, Hengda Real Estate Group Co. and Tianji Holding Limited.
  • "There has been no announcement from the company or the trustee regarding the coupon payments due 6 November for the two Tianji bonds after the grace periods lapsed. In addition, the company did not respond to our request for confirmation on the coupon payments. We are therefore assuming they were not paid," Fitch said in its ratings announcement.
  • The Chinese real estate developer has been struggling with its coupon payments since September, when it first missed interest payments on its offshore bonds.
  • Another Chinese property developer, Kaisa Group Holdings, also failed to repay a $400M dollar bond that matured on Tuesday. Fitch also downgraded Kaisa to "Restricted Default."

Recommended For You

Comments (22)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.