Moody’s changes Yuexiu Property view

Moody's Investors Service said it revised the outlook on Yuexiu Property Co. Ltd., Westwood Group Holdings Ltd. and Leading Affluence Ltd. to stable from negative.

At the same time, Moody's affirmed Yuexiu Property's Baa3 issuer rating and the Baa3 backed senior unsecured ratings assigned to Yuexiu Property's guaranteed bonds issued by Leading Affluence and Westwood Group.

“The revision of the outlook to stable from negative reflects our expectation that the credit profile of Yuexiu Property's controlling shareholder, Guangzhou Yue Xiu Holdings Ltd., will gradually improve over the next 12-18 months, strengthening Guangzhou Yue Xiu's ability to provide support to Yuexiu Property,” Kaven Tsang, Moody's senior vice president, said in a news release.

“We also expect that Yuexiu Property's standalone credit profile will remain stable, given that its robust contracted sales growth, growing revenue and EBIT, and stronger equity base will offset the effect of rising debt to support its fast expansion.”

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