Fitch assigns Yuexiu BBB-

Fitch Ratings said it assigned Yuexiu Real Estate Investment Trust (YXR) long-term issuer default and foreign-currency senior unsecured ratings BBB-. Concurrently, the agency withdrew Yuexiu REIT Asset Management Ltd.’s BBB- rating and stable outlook because the rating was published on Fitch’s website in error.

“YXR's IDR is supported by the quality of its investment-property (IP) portfolio, which comprises mainly office and retail assets in prime locations. YXR's EBITDA interest coverage of 2.3x and net debt/IP value of around 35%, assuming no acquisitions, over the next two years is appropriate for its rating level. Fitch expects recurring income to be stable in the next few years, as the rental contribution from IP recovers to pre-Covid-19 levels. However, YXR's IDR is constrained by its geographical concentration and reliance on contributions from Guangzhou IFC, a commercial office tower in Guangzhou,” the agency said in a press release.

YXR’s outlook is stable.

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