Real Estate

Fitch, S&P downgrade China Evergrande amid concerns over Asian junk bonds


Major credit ratings agencies this week downgraded China’s most indebted property developer Evergrande, as concerns over Asia’s junk bond sector rise. 

Fitch Ratings on Wednesday downgraded China Evergrande one notch from B to CCC, saying that the negative developments surrounding Evergrande may weaken investor confidence, further pressuring its liquidity. 

A rating of CCC means there’s a “real possibility” of a default, from the previous B rating — which means there is material default risk, but a limited margin of safety remains.

S&P Global Ratings on Monday took the property developer down two notches, from B+ to B-, citing its inability to reduce debt “in an orderly manner.” It…


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