Redco Properties Group Limited (Surveillance Report)

The Issuer Rating reflects Redco’s established track record of contracted sales growth and geographical diversification, as well as sufficient low-cost land bank. However, Redco’s rating is constrained by its moderate operating scale, relatively high financial leverage and tapering margins.

The Stable Outlook reflects our expectation that Redco would maintain a moderate growth of contracted sales and prudently continue its geographical diversification. The company also has a low-cost land bank that can support its sales growth for the next three to four years.