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Major credit ratings agencies this week downgraded China’s most indebted property developer Evergrande, as concerns over Asia’s junk bond sector rise.

Fitch Ratings on Wednesday downgraded China Evergrande one notch from B to CCC, saying that the negative developments surrounding Evergrande may weaken investor confidence, further pressuring its liquidity.

A rating of CCC means there’s a “real possibility” of a default, from the previous B rating — which means there is material default risk, but a limited margin of safety remains.

S&P Global Ratings on Monday took the property developer down two notches, from B+ to B-, citing its inability to reduce debt “in an orderly manner.” It added that the firm’s credit rating was dragged down by what S&P believed to be a “severe” decline in profitability at the firm.

China Evergrande has been struggling with liquidity issues since last year. However, last week’s news of an asset freeze refocused attention on the company’s debt troubles. That brought its share price down to a four-year low. Year-to-date, Evergrande’s share price has tumbled more than 60%.

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Ratings agencies downgrade China Evergrande as concerns over junk bonds rise