China Evergrande Group has defaulted on dollar-denominated debt for the first time, as declared by the Fitch Ratings after the world's most debt-laden property developer failed to make a crucial interest payment, Reuters reported.

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Fitch Ratings said Thursday it has downgraded China Evergrande Group and its subsidiaries – Hengda Real Estate and Tianji Holding from 'C' to 'restricted default'. A restricted default rating means an entity has defaulted on one or more of its financial commitments even though it is meeting other monetary obligations.

The downgrade comes after the company failed to make payment for bond interest due on November 6. Evergrande with liabilities worth over $300 billion failed to pay $82 million. The grace period expired on December 6, according to the report.

Per a Bloomberg report, this development marks the beginning of an end for the sprawling real estate empire. Evergrande began its journey 25 years ago. And its liabilities has made it China's biggest-ever default. The next challenge lies with the Chinese government to prevent the debt crisis in the property sector from igniting a broader contagion.

However, so far, neither Beijing nor Evergrande has confirmed the default. Though, the company did say there was "no guarantee" it could meet obligations. The company had recently set up a risk management committee. Included in the committee are officials from state entities that would play an important role in "mitigating and eliminating the future risks" of the group, a Reuters report said Monday.

To be updated.

Also Read | Explained: Property giant Evergrande’s debt crisis; what it means for China and beyond

(Edited by : Yashi Gupta)