S&P upgrades Greentown China

Standard & Poor’s said it raised the long-term corporate credit rating on Greentown China Holdings Ltd. to BB from BB-.

The agency also said it raised the long-term issue rating on the company’s senior unsecured notes to BB- from B+, along with its long-term Greater China regional scale rating to cnBBB- from cnBB and on the notes to cnBB+ from cnBB-.

The outlook is stable.

The upgrades reflect Greentown’s moderately strategic position as to its largest shareholder, China Communications Construction Group, S&P said.

Greentown’s financial performance also is expected to improve in 2015 and 2016, owing to better conditions in China’s property market, the agency said.

The company also is expected to have limited new land acquisitions and fewer new borrowings, S&P said. Its debt-to-EBITDA ratio will gradually improve toward 6x in 2015 and 2016, the agency said, from 7.2x in 2014.

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