The Issuer Rating reflects our assessment of Dexin China Holdings Company Limited’s (“Dexin China” or “the company”) established regional market position, quality projects, and land bank, as well as improving operating scale and access to bank borrowings. The rating also considers Dexin China’s expansion into other populous regions. The company’s contracted sales has been under pressure since 3Q2021 due to property market demand turning weak in China. Sales performance, together with its high exposure to joint ventures and liquidity challenges, would constraint Dexin China’s rating.
The Stable Outlook reflects our expectation that Dexin China will maintain its market position in its home base Zhejiang Province with a mindful expansion pace. At the same time, we expect the company to maintain its relatively stable sell-through rate and cash collection rate amid challenging market conditions.