Fitch Ratings affirmed its long-term issuer default rating on China Overseas Land & Investment Ltd. at A-.
The outlook is stable.
The rating agency also affirmed the company's foreign-currency senior unsecured rating and its guaranteed notes at A-.
Fitch said it expects the company to meet its 2016 contracted sales target of HK$210 billion, and noted that its contracted sales rose 24.8% year over year in the first 11 months of 2016. It also pointed out that China Overseas Land has one of the lowest borrowing costs among Chinese homebuilders as a result of access to offshore bond and loan markets and its status as a state-owned enterprise.
Fitch credited the stable outlook to its expectation that China Overseas will maintain its leadership position in the Chinese residential homebuilding market, and continue to grow at a moderate pace.
The rating agency further said it does not expect the recent change in management to have any impact on the company's rating.