China’s troubled real estate developer cited by ratings agency

(CNNMoney) — Chinese property developer Evergrande is at the center of a corporate-debt crisis.

Fitch Ratings on Tuesday said Evergrande, a real estate developer and a subsidiary of Sunac China Holdings, is among a group of companies that have defaulted on a series of bonds.

Fitch said in a statement that not all of the bonds in question were Evergrande’s.

The agency also said Sunac China has defaulted on one of its bonds, as did an affiliate of the Chinese state-run state-owned bank Industrial and Commercial Bank of China.

The ratings agency noted that Evergrande also sold some assets to repay its debt, including one $500 million bond due in 2022.

The news is the latest sign of a worsening debt crisis for China. Earlier this month, Fitch also warned that one of the country’s biggest banks, China Construction Bank, has defaulted on one of its bonds.

Chinese state-controlled companies have issued billions of dollars in bonds in recent years, many to investors abroad.

China’s investors and investors abroad have “been disappointed at how little information they get about corporate debt sustainability” in the country, Vincenzo Longoni, Fitch’s head of sovereign ratings for Asia, told reporters at a briefing in Hong Kong last week.

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