S&P turns Country Garden view to stable

S&P said it revised the outlook for Country Garden Holdings Co. Ltd. to stable from positive and affirmed its BB+ rating.

“We revised the rating outlook on Country Garden back to stable given the softer sales outlook. We believe this sales outlook would make it harder for the company to further deleverage partly via continued earnings improvement like we previously expected. Its margin pressure also contributed to our view because pricing pressure typically accompany slowing sales,” S&P said in a press release.

The agency said it estimates Country Garden's leverage will remain relatively stable in 2022. “With almost 8% decline in adjusted debt, its leverage, as measured by debt-to-EBITDA ratio, was 3.7x in 2021, only slightly higher than our expected ratio of 3.5x-3.6x.”

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.