S&P upgrades Yuzhou Properties

S&P said it raised the long-term corporate credit rating on Yuzhou Properties Co. Ltd. to BB- from B+, along with the long-term issue rating on its senior unsecured notes to B+ from B.

The upgrades reflect the company's materially increased operating scale, which is now comparable with some larger peers in the BB- category, S&P said.

In the past, Yuzhou's high concentration in Fujian was one of its key credit constraints, but this has improved with its expansion into other provinces, the agency said.

Yuzhou also has improved its earnings stability with increasingly more diversified sales, S&P added.

The company will maintain its high profitability over the next two years due to its sizable, low cost land banks, the agency said.

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