The Issuer Rating reflects CIFI Holdings (Group) Co. Ltd. (“CIFI” or “the company”)’s established market position and stable contracted sales prospect for 2021 amid a challenging market, sizeable land bank available for business growth of the coming three years, and cash collection capability that helps secure organic funding of capital expenditure. CIFI’s rating constraints include high financial leverage and high percentage of contracted sales from joint venture (“JV”) contributions which lower its financial transparency.
The Stable Outlook reflects our expectation that CIFI will maintain stable profitability metrics, sustain its operating efficiency, and replenish its land bank in a measured manner while managing its financial leverage.