China Evergrande has been declared as a defaulting firm by Fitch after it the rating agency could not reach the property developer for confirmation on a missed coupon payment.
Fitch has downgraded China Evergrande’s status to «restricted default», defined as an issuer experiencing a default or a distressed debt exchange without beginning winding-up processes such as bankruptcy filings and maintaining operations.
According to a note by Fitch, Evergrande did not respond to its request for confirmation on coupon payments totalling $82.5 million due last month with a 30-day grace period ending this week, resulting in the assumption that «they were not paid».
The declaration follows a series of statements issued by various developers this month, alongside regulators, signaling growing concerns about debt problems.
