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.
“This makes full repayment of its debts unlikely.”