S&P Says It Believes China Evergrande Default Still ‘Highly Likely’

A sign of the Evergrande Center is seen at the Evergrande Center building in Shanghai on Oct. 9, 2021. (Hector Retamal/AFP via Getty Images)

HONG KONG—S&P Global Ratings said on Thursday a default is still “highly likely” for China Evergrande Group despite its recent bond coupon payments because it has a bigger test in March and April next year, facing a total of $3.5 billion maturities in dollar bonds.

The S&P Global logo is displayed on its offices in the financial district in New York City on Dec. 13, 2018. (Brendan McDermid/Reuters)

“The firm has lost the capacity to sell new homes, which means its main business model is effectively defunct. This makes full repayment of its debts unlikely,” S&P Global said in a report.