S&P rates Kaisa Group B

S&P said it assigned a B long-term issuer credit rating to Kaisa Group Holdings Ltd.

Kaisa Group has moderate geographic concentration, high debt leverage and weaker interest coverage than its peers, the agency said.

Tempering these risks are the company's increasing operating scale, high quality land bank replenishment from urban renewal projects and likely de-leveraging over the next 12- to 18-months.

S&P said it believes Kaisa will continue to focus on the Greater Bay Area and on higher-tier cities in China.

The company has strong market position and knowhow in Shenzhen and other key cities, the agency said. These markets have growing and resilient demand, S&P said.

Kaisa's geographical concentration makes it vulnerable to regional policy changes, the agency added.

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