trending Market Intelligence /marketintelligence/en/news-insights/trending/jsngarsg3waactwns96vka2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us
In This List

Fitch affirms LVGEM ratings

Gauging Supply Chain Risk In Volatile Times

The Commercial Real Estate (CRE) Sector Feels the Impact of the Coronavirus

Credit Analytics Case Study Poundworld Retail Ltd


IFRS 9 Impairment How It Impacts Your Corporation And How We Can Help

Fitch affirms LVGEM ratings

Fitch Ratings affirmed the long-term foreign-currency issuer default rating on LVGEM (China) Real Estate Investment Co. Ltd. at B, with a stable outlook.

The rating agency also affirmed LVGEM's senior unsecured rating and the rating on its outstanding U.S. dollar senior notes at B. The senior unsecured rating has a recovery rating of RR4.

Fitch attributed the affirmation to the quality of the Hong Kong-based developer's investment properties, including its centrally located Shenzhen NEO Tower office buildings. Fitch noted the company's high-margin urban redevelopment projects in Shenzhen, strong rental EBITDA of over US$50 million per year and over US$1.5 billion in rental-deriving assets.

However, Fitch said the ratings are constrained by the company's small and fluctuating sales, limited geographical concentration and high leverage.

The agency expects LVGEM's contracted sales to reach 6 billion yuan in 2018 and 7 billion yuan in 2019. In 2018-2019, the company's recurring EBITDA is projected to surpass 500 million yuan, while leverage is expected to remain above 50%.

LVGEM anticipates the addition of about 12 million square meters of urban redevelopment projects through Wong Hong King, its controlling shareholder, Fitch noted.

As of Sept. 5, US$1 was equivalent to 6.83 yuan.