We assess that China Evergrande Group and its offshore financing arm Tianji Holding Ltd. have failed to make coupon payments for their outstanding U.S.-dollar senior notes. The grace periods for payments have also lapsed. On Dec. 17, 2021, S&P Global Ratings lowered the issuer credit ratings on Evergrande and Tianji to 'SD' from 'CC'. We also lowered the issue rating on Tianji's bonds due 2022 and 2023 to 'D' from 'C'. We subsequently withdrew all our ratings on Evergrande, its subsidiary Hengda Real Estate Group Co. Ltd., and Tianji, at the group's request. 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
