S&P lifts Hopson to stable

S&P said it revised the outlook on Hopson Development Holdings Ltd. to stable from negative.

The agency also said it affirmed the B- long-term corporate rating and raised the long-term Greater China regional scale rating on the company to cnB from cnB-.

The outlook revision was due to the company's improved liquidity position and leverage in 2017 and an expected improvement in 2018, S&P said.

This is due to an improving debt maturity profile, good control over its amount of debt, sound delivery and recognition of development projects, the agency explained.

But, S&P said it believes Hopson will continue to see weak sales and slow churn in the foreseeable future, resulting in a debt-to-EBITDA ratio of higher than 12x in 2017 and 2018.

Hopson's leverage improved to 12x in 2016 from about 20x in 2015, the agency noted.

S&P also said it believes Hopson has strengthened its liquidity position in 2016 by tapping a domestic corporate bond and an asset-backed security while the market was favorable, effectively extending its debt maturity profile with competitive funding rates.

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