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Evergrande: Fitch's credit watchdogs have downgraded the company to Restricted Default
Photo: ALEX PLAVEVSKI / EPA
The rating agency Fitch warns the Chinese real estate companies Kaisa and Evergrande of an imminent payment default. Fitch set both companies to the "Restricted Default" level on Thursday morning, the agency announced. "Restricted Default" means something like "restricted credit default". The rating is only one level above the classification for payment default ("D - Default").
Kaisa failed to repay a senior debt of $ 400 million as of December 7th, according to Fitch. At Evergrande, Fitch criticizes the lack of interest payments. These would originally have been due at the beginning of November. Fitch also said that no payments had been made within the grace period up to December 6th. Various creditors had not received any interest payments from Evergrande earlier this week.
In addition to the heavily indebted Evergrande group, other Chinese real estate companies such as Kaisa are also getting into ever deeper difficulties.
Kaisa Group Holdings shares were suspended on the Hong Kong Stock Exchange on Wednesday over solvency concerns.
Evergrande had recently warned of possible financial difficulties itself.
Talks about debt restructuring are currently planned
la / dpa-afx
