S&P Global Ratings lifted its long-term corporate credit rating on Agile Group Holdings Ltd. to BB from BB-, with a stable outlook.
The rating agency also lifted its long-term issue rating on the China-based real estate developer's outstanding senior unsecured notes to BB from BB-.
Thanks to its low-cost land bank in certain robust key markets of Hainan and the Greater Bay Area in China, Agile Group is likely to sustain high margins within the next two years, and its strong profitability and fast revenue growth will likely offset the effect of higher capital spending, allowing the company to keep its improved leverage in 2018, S&P said in a note.
S&P attributed the stable outlook to its view that Agile will continue to see steady growth in sales, good margins and largely stable leverage within the next 12 months.
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.