This would be the fourth downgrade in two months for Aoyuan, after having been downgraded three times already by Fitch in November.

On the move, Fitch notes that:

"The downgrade reflects our view that a default or default-like process has begun, based on the company's announcement that it has not made payments or reached an agreement with creditors regarding its offshore financing, after it received notice from creditors demanding payment on financings with principal amount of around USD651 million following recent rating actions by rating agencies."

As highlighted last month, Aoyuan is one of Guangzhou's largest property developers so this just adds to the ongoing worries with Evergrande also failing to pay up today.