S&P Global Ratings affirmed and subsequently withdrew Yuexiu Property Co. Ltd.'s BB+ long-term corporate credit rating at the company's request.
The affirmation mirrored the agency's assessment of Yuexiu Property's established market position in Guangzhou, China, diversified funding resources, financial flexibility provided by Yuexiu Real Estate Investment Trust and support from parent Guangzhou Yuexiu Holdings.
S&P also took into account the company's high leverage brought on by its aggressive land acquisitions, low profitability, and slow revenue recognition.
The outlook on the rating was stable and reflected S&P's expectation that Yuexiu Property's leverage will remain high but stable at its current level over the following one to two years. Additionally, its profitability will register moderate recovery with reasonable sales growth.
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.