S&P lowers Vanke Real Estate issuer rating

S&P said it affirmed the BBB+ long-term issuer credit rating on China Vanke Co. Ltd.

The outlook is stable.

S&P also said it lowered the long-term issuer credit rating on Vanke Real Estate (HK) Co. Ltd. to BBB from BBB+.

The outlook is stable.

S&P also said it affirmed the BBB long-term issue rating on senior unsecured notes that Vanke Real Estate (HK) issued.

The ratings reflect the company's continued growth of contracted sales and expectation that it will remain a top property developer in China over the next 12- 24-months, the agency said.

S&P said it expects China Vanke to continue to transition toward becoming a more diversified company with greater exposure outside of residential property development.

This move creates some execution risk and will likely increase the company's financial leverage, the agency said.

But, China Vanke's strong cash generation from property development and good record of financial prudence will support the company's transition, S&P explained.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.