Fitch Ratings changed Evergrande’s credit rating from “C” to “RD” (Restricted Default) on Dec. 9, 2021.

Fitch was the first credit rating agency to announce the default of China Evergrande’s foreign bonds.

The UK Financial Times said that Fitch’s reputable rating just marked the beginning of Evergrande’s downfall.

Evergrande’s liabilities are estimated to exceed $300 billion.

According to Fitch’s analysis report, Evergrande Group or its trustees of the U.S. dollar bonds did not give any notice of interest payment, nor did they respond to confirm the amount. So the conclusion was that Evergrande had not made the payment.

Fitch’s downgrading Evergrande to “RD” could cause a cross-default of $19.2 billion debt from other creditors.

In addition to Evergrande, Fitch also downgraded its subsidiaries, Hengda Real Estate Group Co. Ltd. and Tianji Holding Limited.

Another Chinese real estate Kaisa Group also received “Restricted Default” for nonpayment of $400 million in bonds due on Dec. 7.

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