Evergrande, Kaisa cut by Fitch to default after missed payment deadlines By Reuters

Evergrande, Kaisa cut by Fitch to default after missed payment deadlines By Reuters
Evergrande, Kaisa cut by Fitch to default after missed payment deadlines© Reuters. FILE PHOTO: A sign of the Kaisa Group Holdings is seen at the Shanghai Kaisa Financial Center, in Shanghai, China, December 7, 2021. REUTERS/Aly Song

By Clare Jim and Karin Strohecker

HONG KONG/LONDON (Reuters) – Ratings agency Fitch downgraded property developers China Evergrande Group and Kaisa Group on Thursday, saying they had defaulted on offshore bonds, while a source said Kaisa had started work on restructuring its $12 billion offshore debt.

The downgrades to so-called “restricted default” status come even though Evergrande and Kaisa have not officially announced defaults that could result in drawn-out debt restructuring processes.

The fate of Evergrande, which has more than $300 billion in liabilities, and other indebted Chinese property companies has gripped financial markets in recent months amid fears of knock-on effects around the world, although Beijing has repeatedly…

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