Fitch Ratings upgraded Logan Property Holdings Co. Ltd.'s long-term foreign- and local-currency issuer default ratings to BB from BB-, citing declining leverage, high profitability and sufficient land bank to support growth.
The rating agency's outlook for the Chinese property developer is stable.
Fitch said it expects Logan Property's sufficient land bank will support the company's growth and take its leverage to below 40% over the next 12 to 18 months.
The rating agency noted that the property company's contracted sales are comparable with other BB-rated developers in China such as Cifi Holdings (Group) Co. Ltd., and higher than those of China Aoyuan Group Ltd. and Yuzhou Properties Co. Ltd., which have the same credit rating.
It added that Logan Property's leverage of 36% as of June-end is also lower than its peers including Cifi Holdings and Future Land Development Holdings Ltd.
