S&P cuts China Evergrande

S&P said it lowered its ratings for China Evergrande Group and its subsidiary Tianji Holding Ltd. to SD from CC and the ratings on Tianji's bonds due 2022 and 2023 to D from C.

“We lowered the ratings on Evergrande and Tianji following our assessment that the companies have failed to honor coupons beyond the grace periods for payments. The coupons were due on Oct. 31, 2021, for $14 million in private-placement bonds issued by Evergrande, and Nov. 6 for the $83 million U.S. dollar bonds guaranteed by Tianji due in 2022 and 2023. We subsequently withdrew all our ratings on Evergrande and its subsidiaries Hengda and Tianji, at the group's request,” S&P said in a press release.

The agency noted neither the companies nor the trustee have commented on the status of the coupon payments.

“However, widespread reports in the media from reputable outlets point to nonpayment of the Tianji coupons, and we assess these reports as convincing. In addition, we believe that Evergrande has also defaulted on the coupon of the 2022 private dollar bonds because the payment was due at around the same time,” S&P said.

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