Moody’s upgrades Sunac China

Moody's Investors Service said it upgraded Sunac China Holdings Ltd.'s corporate family rating to B1 from B2, and the senior unsecured rating on its existing notes to B2 from B3.

The outlook is positive.

“The ratings upgrade reflects Sunac's demonstrated ability to reduce debt leverage on the back of its strong contracted sales growth and controlled capital spending,” Danny Chan, Moody's analyst, said in a news release.

“The company will likely continue to deleverage over the next 12-18 months."

Moody's said it expects that Sunac's debt leverage will trend towards 60% to 70% over the next 12 to 18 months from around 50% for the 12 months to June 30 and around 36% in 2017.

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