Fitch Ratings affirmed Longfor Group Holdings Ltd.'s long-term issuer default rating at BBB, with a stable outlook.
The rating agency said Dec. 17 it also affirmed the Chinese real estate developer's foreign-currency senior unsecured rating and its outstanding senior unsecured notes at BBB.
Longfor Group's financial stability, strong sales, diversified land bank and increasing recurring EBITDA interest cover are some of the key drivers supporting its rating, Fitch said.
The real estate company is expected to maintain leverage, while continuing to increase its recurring rental income from investment properties through consistent investments. Fitch expects the company's recurring EBITDA/gross interest to increase to 0.71x in 2019 and reach 0.85x by 2020, from the range of between 0.64x and 0.65x in 2017 and 2018.