HONG KONG, 9 December 2019 – Lianhe Ratings Global Limited (“Lianhe Global”), an international credit rating company, has affirmed the global scale Long-term Issuer Credit Rating of ‘BB+’ to CIFI Holdings (Group) Co. Ltd. (“CIFI”). The Outlook is Stable.
The Issuer Rating reflects the Shanghai-headquartered property developer’s stable gross profit margin amid market challenges, sizeable land bank adequate for the business growth of coming three years, and excellent cash collection capability that helps secure organic funding. CIFI’s rating constraints include perceivable increase in financial leverage and a high percentage of contracted sales from joint venture (“JV”) contributions which could to a certain extent obscure its financial transparency.
The Stable Outlook reflects our expectation that CIFI will maintain stable profitability metrics, sustain the operating efficiency, and replenish its land bank in a measured manner while managing its elevated financial leverage.