Evergrande, Kaisa hit with near-default rating
Struggling Chinese property firms Evergrande and Kaisa Group have taken another blow.
Ratings agency Fitch has downgraded the pair to "restricted default".
That means they have experienced debt distress or default, but remain in operation for now.
Fitch says Evergrande didn't respond to requests to confirm it had made overdue debt payments.
So the agency concluded it hadn't.
The two property firms are struggling with massive liabilities - around $300 billion in Evergrande's case.
That has investors around the world anxious over the consequences of a messy collapse.
China has tried to offer reassurance.
On Thursday (December 9) the country's central bank governor said creditors and shareholders would be fully respected, and there was no risk to Hong Kong markets.
Kaisa is reported to be in talks with bondholders over restructuring its debt.
Trading in shares in the firm - down 75% this year - was suspended on Wednesday (December 8).
Evergrande stock has plunged 88% so far this year.
