S&P Global Ratings assigned its long-term issuer credit rating to China-based developer Radiance Group Co. Ltd., with a positive outlook.
At the same time, the rating agency assigned its B- long-term issue rating to the proposed senior unsecured notes guaranteed by the company.
S&P said the rating underscores Radiance Group's high debt leverage and relatively small scale compared with some of its similar-rated peers. The rating agency said it expects Radiance Group's profitability to decline due to rising land costs.
The positive outlook reflects the rating agency's view that growing revenues and disciplined land acquisitions will help the company materially improve its financial leverage.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.