S&P Global Ratings affirmed its B+ long-term issuer credit rating on China Aoyuan Property Group Ltd. and the B long-term issue rating on the China-based real estate developer's outstanding senior unsecured notes.
The ratings outlook is stable.
The rating agency said the affirmation factors in China Aoyuan's strengthening business position with an expanding operating scale and increasing profitability, which should counterbalance the impact of the company's high leverage.
The stable outlook takes into account S&P's expectation that China Aoyuan will keep seeing robust sales momentum and revenue growth and that it will improve its debt leverage over the next 12 months.
The rating action comes just days after China Aoyuan said it plans to spin off and list its property management business in China that is focused on mid- to high-end residential and mixed-use properties.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.