S&P dumps Chinese real estate giant Evergrande in default

The logo of China Evergrande was seen at the China Evergrande Center in Hong Kong, China on December 7, 2021. REUTERS / Tyrone Siu / File Photo

LONDON, Dec. 1[ads1]7 (Reuters) – The poster child of China’s real estate crisis China Evergrande Group (3333.HK) was officially declared in default by credit rating agency S&P Global on Friday after the dispersed firm missed a bond payment earlier this month.

“We consider that China Evergrande Group and its offshore financing arm Tianji Holding Ltd. have failed to make coupon payments for their outstanding US dollar bills,” S&P said in a statement.

S&P added that Evergrande had requested that the ratings be withdrawn after the downgrades to “selective default”, a term used by rating agencies to describe a lost payment on a bond, but not necessarily all the bonds.

“Evergrande, Tianji or the trustee have not given us any announcement or confirmation of the status of the coupon payments,” said S&P.

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Reporting by Marc Jones, editing by Karin Strohecker

Our standards: Thomson Reuters Trust Principles.

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