Fitch revises Longfor view to stable

Fitch Ratings said it revised the outlook on Longfor Group Holdings Ltd. to stable from positive and affirmed the BBB long-term foreign-currency issuer default rating, senior unsecured rating and the ratings on its outstanding senior notes.

The agency said it also removed all the ratings from under criteria observation, on which they were placed on Oct. 20, following the publication of its updated corporate rating criteria.

“The outlook revision is driven by the heightened uncertainty in the Chinese property market and, despite recent steps by the government to stabilize the sector, there has been minimal evidence of a sustained recovery in the sector. As the result of market volatility, Longfor's contracted sales and sales collection have declined since August 2021, although less severely than the overall industry. Longfor's EBITDA margins have also decreased. Nonetheless, Longfor faces no imminent refinancing pressure, and its business and financial profile is comparable with that of BBB peers,” Fitch said in a press release.

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