Fitch changes Sunac China view to stable

Fitch Ratings said it revised Sunac China Holdings Ltd.'s outlook to stable from negative and affirmed the long-term foreign currency issuer default rating at BB-.

Sunac's senior unsecured rating and the ratings of its outstanding senior notes were also affirmed at BB-.

The agency said the outlook revision reflects an expectation that the homebuilder's leverage will likely stay below 50% in 2018.

“Sunac's management has publicly made a commitment to deleverage and we think there is no pressure for the company to continue adding to its land bank aggressively as it has more than 100 million sq m of gross floor area (GFA), an ample supply that will last for over five years of development,” Fitch said in a news release.

“Sunac has not been making material land acquisitions after it bought the Wanda City cultural and tourism assets more than a year ago.”

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