China Evergrande ‘likely to default’ within months – S&P

Sharing is Caring!

Embattled property giant China Evergrande is “highly likely” to default when it faces enormous repayment pressures early next year, according to S&P Global ratings.

The agency has released a report saying the property giant faces a big test in March and April 2022, when it will have to make a $3.5 billion repayment of principal for its public US dollar senior notes.

“At some point … Evergrande’s massive debt will catch up with it,” the S&P report said.

“The firm has lost the capacity to sell new homes, which means its main business model is effectively defunct.

See also  The Secret Panel? US Yield Curve Inversion, CDS Default Price, SOFR Signals More Rate Increases Then Rate Cuts

“This makes full repayment of its debts unlikely.”

See also  US Leading Indicator More Like Bleeding Indicator After 10 Straight Months Of Declines, Down -1% As M2 Money Growth Dies (Mortgage Rate Rises To 6.47%)

Views: 11

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.