Moody's revises Yuexiu view to negative

Moody's Investors Service said it revised the outlooks of Yuexiu Real Estate Investment Trust (Yuexiu REIT) and Yuexiu REIT MTN Co. Ltd. to negative from stable.

The agency also affirmed the Ba1 corporate family rating of Yuexiu REIT, the provisional (P)Ba1 backed senior unsecured rating on Yuexiu REIT MTN’s backed medium-term note program, and Ba1 backed senior unsecured rating on the backed notes issued under the MTN program.

"The negative outlook reflects increased uncertainties over Yuexiu REIT's ability to strengthen its operations and credit metrics to levels commensurate with its current Ba1 CFR amid challenging business conditions in China (A1 stable)," said Alfred Hui, a Moody's analyst, in a press release.

The agency said it projects Yuexiu REIT's revenue and EBITDA recovery over the next 12-18 months taking longer than it had previously expected, citing uncertainties about China's economic recovery.

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