Evergrande, Kaisa rated 'restricted default' by Fitch after missed payment

Cross defaults triggered for both companies, says rating agency

Developers China Evergrande Group and Kaisa Group were downgraded to "restricted default" by rating agency Fitch due to non-payment of offshore bond dues, while a source said Kaisa had started work on restructuring its $12 billion offshore debt.
 

The downgrades came on Thursday even as Evergrande and Kaisa have not officially announced the defaults that could result in long debt restructuring processes.
 

In its note on Evergrande, Fitch said the developer did not respond to its request for confirmation on the coupon payments worth $82.5 million that were due last month with the 30-day grace period ending this week.
 

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