Fitch downgrades China's Evergrande to restricted default

Fitch Ratings said Thursday it downgraded the rating of Chinese real estate developer Evergrande and its subsidiaries, Hengda and Tianji.

The global rating agency said the downgrades to restricted default (RD) reflect the non-payment of the companies coupons.

"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, "it said in a statement.

"Failure to make coupon payments within the grace period is consistent with Fitch's definition of an 'RD' rating," it noted.