Evergrande China “partial default” rating agency Fitch announced

Rating agency Fitch Ratings announced on the 9th that it has certified the rating of China Evergrande Group, which has suffered from huge debt and suffered from financial difficulties, as a partial default (default). This is because the interest payment on US dollar bonds could not be confirmed. The outstanding balance of US dollar bonds is about 2 trillion yen, which may become the largest default ever for a Chinese company. Foreign investors are likely to be more vigilant against Chinese companies.

Fitch downgraded the Evergrande Group’s long-term foreign currency issuer rating from Single C to “RD,” which means partial default. Evergrande did not pay the interest of US $ 82.49 million (about 9.3 billion yen) issued by the group companies by November 6th, and was in the 30-day grace period. The grace period expired on the afternoon of December 7, Japan time, but Evergrande was not paying interest, according to multiple reports.

So far, Evergrande has announced that it will continue its business and enter into talks with creditors to restructure its foreign currency-denominated debt, and believes the impact will be limited.

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