Fitch Ratings affirmed Sino-Ocean Group Holding Ltd.'s long-term foreign-currency issuer default rating at BBB-, with a stable outlook.
The Chinese homebuilder's rating benefited from an improvement to bb+ in the group's standalone credit profile due to its moderate strategic and operational connections with China Life Insurance Co. Ltd., according to the rating agency.
Fitch also noted that it expects the slowdown in Sino-Ocean Group's land acquisitions for 2019 to drag its leverage for the year below 40%.
Sino-Ocean Group's has a recurring EBITDA interest coverage between 0.3x and 0.4x and leverage within the 35% to 40% range. The rating agency added that the group's financial profile is stronger than that of its peer CIFI Holdings (Group) Co. Ltd., while weaker than that of Shimao Property Holdings Ltd.