On the downgrade, Fitch notes that:

"This reflects the non-payment of coupons due 6 November 2021 for Tianji's USD645 million 13% bonds and USD590 million 13.75% bonds after the grace period lapsed on 6 December. The non-payment is consistent with an 'RD' rating, signifying the uncured expiry of any applicable grace period, cure period or default forbearance period following a payment default on a material financial obligation."

Similar to Kaisa's case, the missed payment above has triggered a default on Evergrande's bonds. As a result, Tianji and Evergrande's other US dollar notes will become due immediately and payable if the bond trustee or holders of at least 25% in aggregate principal amount of the offshore notes declare so.