Yango Group Co., Ltd (Initial Issuer Report)

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

The Issuer Rating reflects Yango Group Co., Ltd (“Yango” or “the company”)’s leading market position and brand recognition in the Chinese property market. However, Yango’s rating is constrained by its high financial leverage and lower-than-peer profitability.

The Stable Outlook reflects our expectation that Yango would acquire new land in a measured manner, lower its financial leverage and continue to improve its operating efficiency gradually to ease its liquidity position in the following 12 to 24 months.