Fitch says possible China Evergrande default may have broader effects


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09/15/2021 2:53 HONG KONG (Reuters) - Rating agency Fitch said that numerous sectors could be exposed to heightened credit risk if China's No.2 property developer Evergrande Group were to default, although the overall impact on the banking sector would be manageable. "We believe a default would reinforce credit polarisation among homebuilders and could result in headwinds for some smaller banks," Fitch said in a note late on Tuesday. Fitch downgraded China Evergrande Group to "CC" from "CCC+" on Sep. 7, indicating that it viewed a default of some kind as probable. Evergrande has been scrambling to raise funds to...