Fitch Downgrades Developer Kaisa To “Limited Default”

Fitch analysts assessed the situation in the Chinese company Kaisa and decided to downgrade its long-term rating to “limited default”. It is received by those issuers who are not able to pay off their debts on time, but haven’t begun bankruptcy proceedings yet. The agency said in a statement that the developer was unable to meet its payment obligations totaling $400 million on December 7. These are bonds denominated in dollars, according to which deferred payment is impossible. Trading in Kaisa shares on the exchange was suspended the next day. Earlier, The Wall Street Journal reported that Kaisa’s debt to foreign creditors is estimated at $10.9 billion. Last month, it was reported that the developer intends to negotiate with creditors to exchange securities maturing in early December for “longer” bonds. But apparently, he failed to do it. In the near future, the company will have to pay another $88 million to creditors.

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Arseny Kudrin

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