Fitch upgrades Redco

Fitch Ratings said it upgraded Redco Properties Group Ltd.'s long-term foreign-currency issuer default rating to B+ from B. The agency also raised Redco's senior unsecured ratings B+ from B with an RR4 recovery rating.

“The upgrade reflects Redco's expanded attributable contracted sales, which rose by 49% to CNY 21.3 billion in 2020, and adequate landbank that can sustain attributable contracted sales growth in 2021 that is closer to that of B+ rated peers. Redco also maintained its geographical diversification, with 126 projects in 36 cities. Furthermore, we forecast leverage, measured by net debt/adjusted inventory, including proportional consolidation to joint ventures and associates, to remain below 35%,” Fitch said in a press release.

The outlook is stable.

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