Radiance Group Company Limited (Surveillance Report)

The Issuer Rating reflects Radiance Group Company Limited’s (“Radiance” or “the company”) improved market position and financial leverage, enhancement in transparency and corporate governance following the listing of Radiance Holdings (Group) Company Limited (“the listco”), continuous expansion in tier 2 and core tier 3 cities, and steady project delivery. However, Radiance’s rating is constrained by its moderate operating scale, limited visible track record, and moderate financial metrics.

The Stable Outlook reflects our expectation that Radiance will replenish its land bank portfolio and expand its operating scale in tier 2 and 3 cities while managing its debt growth cautiously and maintaining its credit profile commensurate with the ‘BB’ credit rating category.