S&P: Yuzhou to positive view

S&P said it revised the outlook on Yuzhou Properties Co. Ltd. to positive from stable.

The agency also said it affirmed the company’s B+ long-term corporate credit rating and cnBB long-term Greater China regional scale rating.

The agency also said it affirmed the B long-term issue rating and cnBB- long-term Greater China regional scale rating on the company's senior unsecured notes.

The outlook revision reflects an expectation that Yuzhou will rapidly expand its operating scale and materially minimize the gap in scale compared with its larger peers over the next 12 months, S&P explained.

The company's high earnings reliance on a single province, Fujian, has constrained its credit profile, the agency said.

But this should improve as Yuzhou establishes a meaningful presence outside its home market, S&P said.

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