S&P says it believes China Evergrande default still ‘highly likely’

S&P Global Ratings said on Thursday a default is still “highly likely” for China Evergrande Group (3333.HK) 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 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.