HONG KONG, 2 April 2019 – Lianhe Ratings Global Limited (“Lianhe Global”), an international credit rating company, has assigned a ‘BB-’ global scale Long-term Issuer Credit Rating to Redsun Properties Group Limited. (“Redsun”). The Outlook is Stable.
The Issuer Rating reflects Redsun’s operating track record and continuous expansion into tier 2 and 3 cities, especially in the Yangtze River Delta. However, Redsun’s rating is constrained by its small operating scale, weak competitiveness in land acquisition, moderately high financial leverage and lower-than-peer interest coverage.
The Stable Outlook reflects our expectation that Redsun would replenish its land bank portfolio and expand its operating scale in tier 2 and 3 cities while managing its debt growth cautiously commensurate with credit profiles in the ‘BB-’ category.