CIFI Holdings (Group) Co. Ltd. (Initial Issuer Report)

Lianhe Ratings Global Limited (“Lianhe Global”) has assigned a ‘BB+’ global scale Long-term Issuer Credit Rating to CIFI Holdings (Group) Co. Ltd. (“CIFI”). The Outlook is Stable.

The Issuer Rating reflects CIFI’s established market position, a robust contracted sales growth, an improving operating scale with a diversified property portfolio and a consistent track record of strong sales execution capability. However, CIFI’s rating is constrained by its increasing financial leverage and a high percentage of contracted sales contributed by joint ventures (“JV”) projects which are likely to lower its financial transparency.

The Stable Outlook incorporates our expectation that CIFI will continuously maintain a strong revenue growth and a stable profit margin while prudently managing leverage level and controlling acquisition cost.