Fitch lifts Country Garden to BBB-

Fitch Ratings said it upgraded Country Garden Holdings Co. Ltd.'s long-term issuer default rating to BBB- from BB+.

The outlook is stable.

The agency also upgraded Country Garden's senior unsecured rating and the ratings on its outstanding notes to BBB- from BB+.

Fitch said the ratings are supported by the company’s stronger business profile and the improving stability of its financial profile, which has strengthened to be in line with those of investment-grade peers.

“Country Garden has secured sufficient well-diversified land across China to take advantage of the business upcycle in the lower tier cities in the past 12 months and avoid a downturn in 2015-2016 because of its rising exposure to higher-tier cities,” the agency said in a news release.

“Its cash flow from operations (CFO) also turned positive after it successfully rebalanced its land bank to target customers in all tiers of cities across all major economic regions in China.”

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