Evergrande Cancels Special Dividend, Gripes About S&P Downgrade

Caixin Global | Jul 27, 2021 at 9:35 PM
  • Investors continued to sell China Evergrande Group’s stock Tuesday as the debt-ridden property giant scrapped a planned special dividend and after global ratings agency S&P cut its credit rating.
  • On Monday, S&P Global Ratings Inc. downgraded Evergrande and two of its subsidiaries from B+ to B- with a negative outlook, pushing the ratings deeper into junk-bond territory and marking the third downgrade by a major global ratings agency in the last 30 days.
  • China Chengxin International Credit Rating Co. Ltd. on Tuesday gave subsidiary Evergrande Real Estate Group Ltd. a negative outlook (link in Chinese), citing the parent’s delayed repayment of some commercial notes and tightening regulatory oversight on the industry.