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- Evergrande has quietened fears of default, for now, saying its main group Hengda Real Estate will make a bond coupon payment on time
- Analysts, policymakers and investors have been speculating about the gravity of a potential default of the heavily indebted Chinese property giant
- The Big Three credit rating agencies have all downgraded their ratings for Evergrande in recent months
Evergrande has quietened fears of default, for now, saying its main group Hengda Real Estate will make a bond coupon payment tomorrow.
The group will make its coupon repayment on its Shenzhen-traded 5.8 per cent September 2025 bond on time, Reuters reported.
Analysts, policymakers and investors have been speculating about the gravity of a potential default of the Chinese property giant which has 1.97 trillion yuan (A$420 billion) of liabilities.
The Big Three credit rating agencies S&P, Moodys and Fitch Ratings have all downgraded their ratings for Evergrande in recent months. Fitch has flagged a “probable” default.
Last week, China Chengxin International (CCXI) also downgraded Hengda Real Estate bonds from AA to A.
Following the downgrade, the group suspended trading of its onshore bonds for a day, before resuming trade uniquely through negotiated transactions.
