Fujian Yango Group Co., Ltd (Initial Issuer Report)

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

The Issuer Rating reflects Fujian Yango’s leading market position and brand recognition in the Chinese property market operated by its main subsidiary Yango Group Company Limited (“Yango”, ‘BB-’/Stable), high financial leverage and moderately weak profitability. The rating also considers Fujian Yango’s standalone moderate liquidity with significant debt.

The Stable Outlook reflects our expectation that Fujian Yango would continue maintaining a controlling stake in Yango, which would acquire new land in a measured manner, and would be prudent in non-property acquisitions. This will help moderately improve its financial leverage and EBITDA interest coverage in the following 12 to 24 months.