Fitch turns Guangzhou R&F view to stable

Fitch Ratings said it revised the outlook on Guangzhou R&F Properties Co. Ltd. and subsidiary R&F Properties (HK) Co. Ltd. to stable from negative and affirmed the issuer default ratings at B+. Simultaneously, Fitch affirmed Guangzhou R&F's local-currency IDR at B+ and withdrew the rating.

Fitch also affirmed all the outstanding U.S. dollar notes issued by Easy Tactic Ltd., a wholly owned subsidiary of RFHK at B+. RFHK guarantees the notes, while Guangzhou R&F provides credit support.

“The stable outlook and affirmation reflect our view of alleviated refinancing risk on Guangzhou R&F's upcoming capital-market maturities. The company has successfully executed asset disposals as well as offshore bond and equity issuance since 1H20. Its ratings are constrained by weaker-than-peer liquidity, despite a strong business profile, while leverage is in line with that of B+ peers. We believe minimal land acquisitions, good contracted sales and further project stake sales should help the company deleverage,” Fitch said in a press release.

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