Fitch Ratings affirmed Yuzhou Properties Company Ltd.'s long-term foreign-currency issuer default rating at BB-, with a stable outlook.
The rating agency said Sept. 12 that it also affirmed the Chinese homebuilder's senior unsecured rating and the ratings on its outstanding U.S. dollar bonds at BB-.
Fitch noted that Yuzhou Properties' higher contracted sales and healthy profitability, with EBITDA margin at above 25%, support its ratings. The developer is expected to maintain wider margin, compared to its peers, due to its good-quality, low-cost land bank.
The agency, however, said the company's sales expansion and relatively short land-bank life of about three years could limit room for deleveraging.
