Research Update: Evergrande And Subsidiaries Downgraded To 'CCC' On Escalating Nonpayment Risk; Outlook Negative - S&P Global Ratings’ Credit Research

Research Update: Evergrande And Subsidiaries Downgraded To 'CCC' On Escalating Nonpayment Risk; Outlook Negative

Research Update: Evergrande And Subsidiaries Downgraded To 'CCC' On Escalating Nonpayment Risk; Outlook Negative - S&P Global Ratings’ Credit Research
Research Update: Evergrande And Subsidiaries Downgraded To 'CCC' On Escalating Nonpayment Risk; Outlook Negative
Published Aug 05, 2021
6 pages (2230 words) — Published Aug 05, 2021
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

We believe China Evergrande Group's nonpayment risk is escalating because of increased asset freezes from various commercial parties, indicating strained liquidity. The root cause of the challenges facing the China-based property developer is funding access, in our view, and lenders could further tighten their exposure. On Aug. 5, 2021, S&P Global Ratings downgraded Evergrande and its subsidiaries Hengda Real Estate Group Co. Ltd. and Tianji Holding Ltd. to 'CCC' from 'B-'. We also lowered our long-term issue rating on the U.S. dollar notes issued by Evergrande and guaranteed by Tianji to 'CCC-' from 'CCC+'. The negative outlook reflects Evergrande's increasing strained liquidity and nonpayment risk. It also reflects our view that its asset disposal plan, though potentially substantial, lacks visibility

  
Brief Excerpt:

...- We believe China Evergrande Group's nonpayment risk is escalating because of increased asset freezes from various commercial parties, indicating strained liquidity. - The root cause of the challenges facing the China-based property developer is funding access, in our view, and lenders could further tighten their exposure. - On Aug. 5, 2021, S&P Global Ratings downgraded Evergrande and its subsidiaries Hengda Real Estate Group Co. Ltd. and Tianji Holding Ltd. to '###' from 'B-'. We also lowered our long-term issue rating on the U.S. dollar notes issued by Evergrande and guaranteed by Tianji to '###-' from '###+'. - The negative outlook reflects Evergrande's increasing strained liquidity and nonpayment risk. It also reflects our view that its asset disposal plan, though potentially substantial, lacks visibility or certainty....

  
Report Type:

Research Update

Ticker
EGRNF
Issuer
China Evergrande Group
Sector
Global Issuers, Structured Finance
Country
Cayman Islands
Region
Latin America
Format:
PDF Adobe Acrobat
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S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Evergrande And Subsidiaries Downgraded To 'CCC' On Escalating Nonpayment Risk; Outlook Negative" Aug 05, 2021. Alacra Store. May 04, 2024. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Evergrande-And-Subsidiaries-Downgraded-To-CCC-On-Escalating-Nonpayment-Risk-Outlook-Negative-2700332>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Evergrande And Subsidiaries Downgraded To 'CCC' On Escalating Nonpayment Risk; Outlook Negative Aug 05, 2021. New York, NY: Alacra Store. Retrieved May 04, 2024 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Evergrande-And-Subsidiaries-Downgraded-To-CCC-On-Escalating-Nonpayment-Risk-Outlook-Negative-2700332>
  
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