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China debt crunch

Fitch declares Evergrande and Kaisa to be in 'restricted default'

Rating agency says failure to make coupon payments could trigger more demands

Thursday's declaration marks the first official recognition of a default by Evergrande, the world’s most indebted real estate company.   © Reuters

HONG KONG -- Fitch Ratings declared China Evergrande Group and Kaisa Group Holdings to be in "restricted default" on Thursday after the two developers failed to meet bond payment deadlines earlier this week.

The move marks the first official recognition of a default by Evergrande, the world's most indebted real estate company. The rating agency downgraded the Chinese developer, its main operating unit and another subsidiary to "RD" from "C."

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