S&P Global Ratings affirmed China Overseas Grand Oceans Group Ltd.'s BBB- long-term corporate credit rating and its BBB- long-term issue rating on the senior unsecured notes, and revised the outlook on the Chinese real estate developer to stable from negative.
The affirmation is in light of strong support for the company by its parent and its established market position in the lower-tier cities in China. The developer is projected to continue with margin recovery in 2018 due to property sales, while its revenue is expected to be driven during the year from the sales.
S&P noted that the outlook on the ratings was revised to stable on the back of the rating agency's expectation that the company will lower its leverage in 2018, supported by its recovering margins, revenue growth and a HK$4.66 billion rights offering.
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