S&P Global Ratings affirmed its BBB- long-term corporate credit rating on Yuexiu Real Estate Investment Trust, as well as its BBB- long-term issue ratings on the company's guaranteed medium-term note program and outstanding senior unsecured notes, with a stable outlook.
The rating agency attributed the affirmation to its expectation that the company's planned 2.28 billion-yuan acquisition of a majority stake in an integrated development in Wuhan, China, will impact its leverage only temporarily.
S&P expects the REIT to deleverage over the next six months as it grows organically and pursues its asset disposal plan. The company is also expected to maintain its stable rental growth and high occupancy rates over the next two years.
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.
