Fitch Ratings upgraded its long-term foreign-currency issuer default rating and senior unsecured rating on Chinese real estate developer Ronshine China Holdings Ltd. to BB- from B+, with a stable outlook.
The rating agency said in an Aug. 18 release that it expects Ronshine's diversified land bank and focus on higher-tier cities to support sales growth over the next 12 to 18 months. The developer's projects are mainly in tier one and tier two cities across China, accounting for 70% of its land bank as of June-end.
Fitch also expects Ronshine to maintain leverage of below 45% over the next two years and an EBITDA margin of between 28% and 30%, while noting its enhanced debt structure and liquidity.
