S&P trims E-House

S&P said it trimmed its ratings for E-House (China) Enterprise Holdings Ltd. and its dollar-denominated notes to B from B+.

“We downgraded E-House because its debt leverage will likely rise with weakening property sales. Furthermore, with a loss of revenue contributions from its largest customer, E-House's primary real estate agency revenue will decline significantly in 2021 and 2022. Its Fangyou business expansion will also be constrained by a delay in the acquisition of online sales platform, Tmall Haofang,” S&P said in a press release.

The agency said it now sees E-House’s leverage rising to 4.5x-5x in 2021 and 2022 compared to its previous forecast of 3.5x-4x for the same periods.

The outlook is negative.

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