S&P upgrades Sunac China

S&P said it raised the long-term issuer credit rating on Sunac China Holdings Ltd. to BB- from B+, along with its long-term issue rating on the company's outstanding senior unsecured notes to B+ from B.

The stable outlook reflects a view that Sunac will control its leverage with moderate contracted sales growth, S&P said.

The agency said it forecasts that the company's debt-to-EBITDA ratio will be 4x to 5x in the next 12- to 18-months.

The company has already outperformed leverage expectation for 2018, S&P noted.

The upgrade also considers the sustainable enhancement in Sunac's business standing. The company has been the fourth-largest developer in China by contracted sales for the past two years, following robust annual growth consecutively in the past three years, the agency said.

The company's diverse land bank and good geographic positioning provide healthy support for its growth, despite softening market conditions, S&P said.

© 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.