S&P Global Ratings affirmed Agile Group Holdings Ltd.'s long-term issuer credit rating and long-term issue rating on outstanding senior unsecured notes at BB, with a stable outlook.
The rating agency said Sept. 27 that the affirmation and stable outlook reflect its expectation that the Chinese real estate developer would reduce its leverage from 2020 through a recovery in margins, improvement in revenue recognition, growth in nonproperty businesses and controlled increase in debt.
Ratings added that it expects the company's debt-to-EBITDA ratio to improve to about 5x in 2020 from a peak of 5.5x in 2019. It also expects revenue contribution from Agile's nonproperty development business to reach 16% in 2020 and 20% in 2021.
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