Fitch assigns B rating to Zhenro

Fitch Ratings said it published a long-term issuer default rating of B to Zhenro Properties Group Ltd. with a positive outlook.

The ratings are supported by its high-quality land bank that is focused on tier 1 and 2 cities spread across four regions in China, Fitch said.

The diversification drives the company's contracted sales growth, sales churn and high margins, the agency added.

The positive outlook reflects an expectation that Zhenro will deleverage in 2018 after it repays borrowings using the proceeds from its initial public offering, Fitch said.

The agency said it expects the company to keep to a prudent financial policy for acquiring land, which will allow its leverage to fall to about 55% in 2018.

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