![]() ![]() S&P considers a rating under "BBB-" to be speculative grade. S&P Global Ratings said separately it had downgraded Shimao Group Holdings' (0813.HK) rating to "BB+" from "BBB-" over concerns that tough business conditions would hinder the company's efforts to reduce debt. The developer has coupon payments of more than $59 million due on Thursday and Friday. Kaisa has the most offshore debt of any Chinese developer, after Evergrande. Moody's Investors Service on Wednesday downgraded Kaisa Group (1638.HK), which on Tuesday made a desperate plea for help, citing liquidity risks, limited financial flexibility and weak recovery prospects for its creditors. More developers are seeing their credit ratings slashed on their worsening financial profiles. Federal Reserve warning on Tuesday that China's property sector could pose global risks. There was a brief lull in mid-October after Beijing tried to reassure markets the crisis would not be allowed to spiral out of control.īut concerns have resurfaced, with the U.S. 28.Ĭhina's property woes rattled global markets in September and October. It also has coupon payments totalling more than $255 million on its June 20 bonds due on Dec. "It would be quite a surprise if the funds do not flow to the trustee in the requisite timeframe given the immediate cross-default and ripple effect on suppliers and the wider People's Republic of China real estate market."Įvergrande's problems add to concerns about a liquidity squeeze in the property sector. "The expectation is that it will be paid," said Karl Clowry, restructuring adviser and partner at Addleshaw Goddard LLP, also pointing to a potential easing in the weeks ahead of the so-called three red lines - financial requirements introduced by the central bank last year that developers must meet to get new bank loans. They declined to be named as they were not authorised to speak to the media.įor its two separate offshore coupon payment obligations that were due in late September, the developer's bondholders did not receive the payments until one working day after the 30-day grace periods ended. , ,Ī failure to pay would result in a formal default by the company and trigger cross-default provisions for other Evergrande dollar bonds, exacerbating a debt crisis looming over the world's second-largest economy.Įxactly what time the grace period expires on Wednesday is unclear, but the two sources with knowledge of the matter said some bondholders had not been paid by the end of the Asian business day. But a 30-day grace period on coupon payments of more than $148 million on its April 2022, 20 bonds ends on Wednesday. The company has not defaulted on any of its offshore debt obligations. SHANGHAI/HONG KONG, Nov 10 (Reuters) - Some bondholders of cash-strapped China Evergrande Group (3333.HK) have not received coupon payments by the end of 30-day grace periods at close of Asia business on Wednesday, sources said, pushing the developer again to the edge of default.Įvergrande, the world's most indebted developer which once epitomised a freewheeling era of borrowing and building, has been stumbling from deadline to deadline in recent weeks as it grapples with more than $300 billion in liabilities, $19 billion of which are international market bonds. Moody's downgrades Kaisa, S&P cuts Shimao to "BB+" from "BBB-".Shares of developer Fantasia plunge 50% after missing payment.Some bondholders not received payment by end of Asia business. ![]() ![]() Evergrande due to pay $148 mln bond coupon on Wednesday. ![]()
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