S&P lifts Yuzhou to stable

Standard & Poor's said it revised the outlook on Yuzhou Properties Co. Ltd. to stable from negative.

The agency also said it affirmed its B+ long-term corporate credit rating and B issue rating on its outstanding senior unsecured notes.

As a result of the outlook revision, the agency also raised the Greater China regional scale rating on the company to cnBB from cnBB- and on the notes to cnBB- from cnB+.

The outlook revision reflects an expectation that Yuzhou's improving property sales are likely to strengthen its cash flow and financial performance over the next 12 months, S&P said.

The ratings reflect the company's limited operating flexibility due to its small scale of operations and high geographic concentration, the agency said.

Yuzhou's limited record and expansion into new markets could also heighten its business and execution risks, S&P added.

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