According to Bloomberg News, Fitch Ratings has slashed the credit rating of China’s Evergrande Group to just one level above default, thereby increasing the assumption that the developer may have missed the deadline last week for dollar bond interest payment.
The real estate company is taking on a fresh payment test come Wednesday, as it is due for another dollar payment. It is quite likely that the debt list of the developer is getting longer after few holders said that it is a separate guarantor of a $260 million bond scheduled to mature on Sunday.
As part of the asset disposal act, Evergrande has agreed to part with a considerable share in Shengjing Bank Co. and lose control on one of its most valuable financial units, thereby raising $1.5 billion. It will do so by giving up shares to a state-owned company in Northeastern China.
Shares of Evergrande escalated by as much as 16.9% on Wednesday, manifesting a 3-day gain of approximately 32%. The developer’s dollar bond which is due in the month of Match 2022 dropped 1% on the dollar recording at 25.1 cents.
Key Developments About the Evergrande Group as per Bloomberg News
Check out the main developments that took place-
- Fitch Rating cut Evergrande Group’s credit rating for likely defaulting on payments (Missed payment).
- Evergrande Bond Bills accumulating as Latest Coupon is due
- Creditors have said to claim the distressed developer in hook for the bond that is due on Sunday.
- Wall Street Banks have been questioned by the Fed on Evergrande exposure
- Evergrande to raise as much as $1.5 billion by selling its stake in a regional bank
- Evergrande crisis has highlighted the funding risk that is involved for the other developers in the market.