Fitch changes Hong Yang view

Fitch Ratings said it affirmed Hong Yang Group Co. Ltd.'s long-term foreign-currency issuer default rating at B and revised the outlook to positive from stable.

The agency also affirmed Hong Yang's senior unsecured rating and the ratings on its outstanding senior unsecured debt at B with recovery rating of RR4.

Fitch said the outlook was revised to reflect an expectation that Hong Yang will be able to keep its pace of land acquisitions in line with growth in contracted sales, and manage its leverage, as measured by net debt/adjusted inventory that proportionately consolidates its joint ventures, to around 45% in 2019-2020.

“The potential IPO of its wholly owned subsidiary Redsun Properties Ltd. will also help to keep Hong Yang's leverage below 50%,” the agency said in a news release.

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