Fitch lifts China Overseas

Fitch Ratings said it upgraded China Overseas Land & Investment Ltd.’s long-term issuer default rating to A- from BBB+.

The outlook is stable.

Fitch also said it upgraded the company’s foreign-currency senior unsecured rating and the notes guaranteed by China Overseas to A- from BBB+.

The upgrades reflect a one-notch uplift from the company’s standalone rating of BBB+, in line with the agency’s criteria.

The company is 61%-owned by China State Construction Engineering Corp. Ltd., the largest construction company in China, which is ultimately owned by the sovereign, Fitch said.

The company’s ratings also consider its satisfactory contracted sales of HK$165.6 billion for January to November 2015 and its ability to maintain a strong EBITDA margin of 31% despite the challenging market conditions, the agency said.

The company continues to maintain its leadership position, strong execution track record and consistent financial policy, Fitch said.

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