Chinese real estate behemoth Evergrande was declared in default on Thursday by Fitch Ratings agency, citing the debt-laden property developer’s failure to pay more than $1.2 billion in bond repayments.

“The non-payment is consistent with an ‘RD’ (restricted default) 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,” Fitch said in a statement.

Chinese property developer Kaisa Group Holdings was also declared in default by Fitch, according to Bloomberg.

The agency cited missed dollar bond interest payments in Evergrande’s case and failure to repay a $400 million dollar bond in Kaisa’s.

Evergrande’s inability to meet its obligations is a market event and will be dealt with in a market-oriented way, the People’s Bank of China Governor Yi Gang said on Thursday.

The interests of investors should be handled according to seniority of their capital, he said.