S&P rates Yango City Group B

S&P said it assigned a B long-term corporate credit rating to Yango City Group Co. Ltd.

The outlook is stable.

The rating reflects a view that the developer will continue to maintain high debt leverage to support its rapid expansion and penetration into higher-tier cities, S&P said.

This fast-expansion model will pressure Yango City's internal resources and increase execution risk, the agency said.

The company's refinancing risk is high relative to peers because of large non-bank borrowings and a short-debt maturity profile, S&P said.

These risks are tempered, however, by Yango City's satisfactory sales execution, an expectation of high growth in contracted sales in the coming two years and the company's established market position in Fujian, the agency said.

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