Evergrande and Kaisa Group Downgraded to Default

China Evergrande Group and Kaisa Group has been formally declared “restricted default” by Fitch Rankings amid failure to pay offshore bond dues.

The downgrade came on Thursday as both companies have not officially announced the defaults that could result in long debt restructuring processes, according to Reuters.

According to Reuters citing sources, Kaisa Group has started working on restructuring its $12 billion offshore debt.

Fitch said, Evergrande did not respond to its request for confirmation on the payment worth $82.5 million that were due last month with 30-day grace period ending this week.

Fitch added, “”We are therefore assuming they were not paid,”.