S&P shifts IFC Development view to stable

S&P said it revised the outlook for IFC Development Ltd. to stable from positive.

“The stable outlook on IFC reflects our view that the company will maintain its strong market position, stable profitability, and recurring cash flow over the next 24 months despite headwinds. We also expect IFC's financial management to remain prudent and will not deviate from its focus on maintaining the asset quality of the IFC complex,” said S&P in a press release.

S&P said it expects IFC's leverage to weaken within the tolerance of the rating with its ratio of funds from operations to debt substantially declining to 15%-17% in the fiscal year ending June 2020, from 22% in fiscal 2019. “Our base case factors in the impact on the Hong Kong commercial property market from the social unrest in 2019, as well as the recent coronavirus outbreak,” the agency said.

S&P affirmed the A ratings on the company and its senior unsecured notes.

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