Moody’s Investors Service has revised rating to stable from positive the outlooks of Greentown China Holdings Limited.
Moody’s has also affirmed Greentown’s Ba3 corporate family rating.
“The change in the ratings outlook to stable from positive reflects our expectation that Greentown’s standalone financial profile will more likely stabilize at the current level than achieve a material improvement in the next 12-18 months,” says Franco Leung, a Moody’s Vice President and Senior Credit Officer.
Moody’s expects Greentown’s debt leverage, as measured by revenue/adjusted debt– including shares in joint venture contributions — will remain at around 55%-60% in the next 12-18 months.
Moody’s also expect Greentown will maintain an adequate liquidity position as it has achieved a good level of sales growth to date. It recorded property contracted sales of RMB68 billion in the first nine months of 2016.
The stable outlook reflects Moody’s expectation that the company will maintain its sales execution, stable financial profile and adequate liquidity in the next 12-18 months.
Greentown China Holdings Limited is one of China’s major property developers, with a primary focus in Hangzhou City and Zhejiang Province. At end-June 2016, the company had 81 projects with a total gross floor area of 31.24 million square meters (sqm). Of the total, 18.21 million sqm was attributable to the company.