S&P Global Ratings said Monday a default by Chinese property developer China Evergrande Group will neither lead to a tidal wave of defaults nor mere ripples from a pebble in a pond but something between the two. A with Evergrande's project companies, which are subsidiaries, facing interest payments on bank loans that are due before Sept. 23. "Events could broadly rattle investors' confidence in China's property sector and for speculative-grade markets broadly, possibly diminishing funding access for unrelated names," said S&P Global Ratings credit analyst Matthew Chow. Evergrande's difficulties come at the same time as China default is likely, the ratings agency said in an FAQ-style commentary, Huarong Asset Management Co. Ltd. is in the middle of a recapitalization. That means two of China's biggest bond issuers of offshore debt are testing the capacity of the government to backstop "potentially substantial failures," he said.