S&P Global Ratings are out with their take on China’s Evergrande Group, noting that they are confident of default in troubled property development giant.

Key takeaways

“We still believe Evergrande default is highly likely.”

“The government wants to unwind Evergrande in a controlled fashion.”

“Or at least let an orderly debt restructuring take place.”

“A big test for Evergrande will be in March and April when large repayments are due.”

“Evergrande has lost the capacity to sell new homes, which means its main business model is effectively defunct.”

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