Fitch: Modern Land to positive

Fitch Ratings said it revised the outlook on Modern Land (China) Co. Ltd.’s to positive from stable and affirmed its long-term foreign-currency and local-currency issuer default ratings at B.

The company’s senior unsecured rating and the ratings on all of its outstanding bonds also were affirmed at B with a recovery rating of RR4.

The positive outlook is based on Modern Land’s strong expansion and healthy leverage ratio, Fitch said.

Modern Land is likely to benefit from looser credit and tax policies for the property market and stronger housing demand in 2015 as it further penetrates top-tier cities under its residential-focused, fast asset-churn strategy, the agency said.

Fitch said it expects Modern Land to maintain its leverage in the high twenties because of its conservative land-acquisition plans and healthy cash collection that stems from its fast-churn business model.

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