BEIJING — Highly indebted property developer China Evergrande will likely default because the company has essentially lost its main business, S&P Global Ratings analysts said in a report Thursday.

China’s number two developer, Evergrande had the highest sales in China last year. Like many Chinese developers, the company sold apartments to consumers before completionHelping to create capital for future project.

However, this cash flow cycle has been causing problems. Despite the company’s ability to sell assets and find ways to make payments in time, “Evergrande’s massive debt will catch up with it,” the S&P report said.

The firm is no longer able to sell homes. This means that its primary business model has been effectively eliminated. According to analysts, this means that full repayment is unlikely.”

The report stated that “We believe Evergrande’s default is very likely.”

Evergrande did not immediately respond to a CNBC request for comment on the S&P report.

The developer was able to avoid default by making last-minute payments. However, analysts stated that Evergrande will face a bigger challenge when $3.5billion in U.S. dollars-denominated notes is due next March and April.