Fitch cuts Evergrande’s long-term foreign currency rating, and that of its subsidiaries Hengda and Tianji, to ‘restricted default’ (Rd) from the previous ‘C’. The measure, a note from the rating agency reads, follows the non-payment of offshore coupons for 82.5 million dollars, at the expiry of the 30-day grace period on 6 December.
With its provision, Fitch certified Evergrande’s first default, which for weeks managed to avoid the worst with payments almost at the last possible moment: the “restricted default” rating indicates that an entity is in default on one or more financial commitments, while continuing to honor other financial commitments. Failure to pay the latest $ 82.5 million offshore coupons “is consistent with a ‘Rd’ (restricted default) rating, which indicates the unsettled expiration of any grace period, remediation or default grace period applicable following of a non-payment on a material financial obligation, “the agency remarked in a statement.
Evergrande’s risk problem is “a market event and the rights and interests of creditors and shareholders will be respected in the order of their legal compensation“This was said by the Governor of the Chinese Central Bank, Yi Gang, during an online seminar on the ‘positioning and perspective of Hong Kong’s international financial center.’ As a result, more than an hour after the close of trading, Evergrande shares jump. by 4.62% in Hong Kong, recovering from the historical lows reached for the non-payment of offshore coupons for 82.5 million dollars, on Monday’s 30-day grace period.
Source From: Ansa
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