Hong Kong (CNN Business) Evergrande, the embattled Chinese property developer, has defaulted on its debt, according to Fitch Ratings. The credit ratings agency on Thursday downgraded the company and its subsidiaries to "restricted default," meaning that the firm has failed to meet its financial obligations. Fitch said the downgrade reflects the company's inability to pay interest due earlier this week on two dollar-denominated bonds. Fitch noted that Evergrande made no announcement about the payments, nor did it respond to inquiries from the ratings agency. The US Federal Reserve warned last month that trouble in Chinese real estate could damage the global economy.

Source: CNN December 09, 2021 20:52 UTC