Fitch affirmed China Jinmao Holdings Group Ltd.'s long-term foreign-currency issuer default rating and senior unsecured rating at BBB-, with a stable outlook.
The rating agency noted the company's stronger operational linkage with parent Sinochem Hong Kong (group) Co. Ltd. It also pointed toward China Jinmao's rapid expansion, which caused leverage to rise above 40% by end of 2017, compared to 30% to 35% for most investment-grade homebuilders in China.
Fitch expects Jinmao to improve its leverage, which was 43.8% as at the end of June, to 40% in 2019 and 37% in 2020. The agency added that deleveraging to closer to 35% may not occur within the next year.