Evergrande Officially Declared In Default

• The Chinese real estate conglomerate Evergrande has officially been labeled as a defaulter for the first time.

• Fitch Ratings, a credit analyst for financial markets, has downgraded Evergrande to “restricted default” over its failure to make two payments by the end of a grace period on Monday. The failure to repay these payments could potentially trigger further cross defaults on the company’s $19.2 billion debt.

• The news of a credit downgrade comes after many months of speculation and updates that the real estate empire would eventually fail to repay its extreme financial obligations.

• The Chinese government has begun to take more direct action in regards to softening the financial blow, appointing officials to oversee the restructuring of Evergrande. While China assures that the situation is under control to calm global financial markets, officials have stated that the government has no intention of bailing out the company.