Chinese property developers rated below investment grade could face financing difficulties if Kaisa Group were to default on its debt obligation, Standard & Poor's said on Thursday.

Kaisa, downgraded to SD or selective default category, missed a deadline to make a $26 million interest payment on its bonds due to mature in 2020. It has until Feb 9 to pay that coupon or else become the first Chinese real estate firm to default on its offshore debt.

"Developers with already-weak liquidity and high refinancing needs in the next 12 months may face a funding crisis as financing sources could be steered toward more stable players," said Christopher Yip.

Kaisa's debt woes at one point shaved not only two-thirds of the value of its bonds but also affected sentiment in the rest of the sector with bonds rated below investment grade hit the hardest.