S&P rates Yuzhou Properties, notes B

Standard & Poor's said it assigned a B+ long-term corporate credit rating to Yuzhou Properties Co. Ltd., along with a B rating to its proposed issue of senior unsecured notes.

The rating is subject to a review of final documents.

The proceeds will be used to fund its land acquisitions and repay certain existing loans, and for general corporate purposes, S&P said.

The outlook is stable.

The rating reflects the company's geographic and project concentration, limited scale and execution risks associated with its expansion outside of its home base of Xiamen city, S&P said.

Yuzhou is exposed to the cyclical and competitive nature of China's real estate market with evolving regulations, the agency said.

These weaknesses are tempered by the company's leading market position in Xiamen in terms of sales and brand, low-cost land bank and above-average profitability, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.