Fitch Ratings affirmed its BB- long-term foreign and local-currency issuer default ratings on Greenland Holdings Corp. Ltd.

The rating agency also affirmed the Chinese homebuilder's BB- senior unsecured ratings. The BB- rating on the company's two medium-term note programs, as well as on four senior note series issued by subsidiaries were also affirmed.

The affirmation is driven by Fitch's expectation that Greenland's leverage, which was 66% as at 2017-end, will decline toward 60% over the next two years, while its cash flow from operations remains positive in 2018. The agency also noted that the company benefits from a large scale as one of the mainland's top property developers by contracted sales.

In addition, Fitch revised its ratings outlook on Greenland Holdings to stable from negative, noting that the developer has arrested the increase in leverage, as measured by net debt/adjusted inventory.