[ET Net News Agency, 25 March 2020] S&P Global Ratings today said that Longfor Group
Holdings Ltd. (BBB/Stable/--)(00960) has one of the strongest liquidity buffers among
rated China-based developers to weather increasing macro uncertainties in the coming 12-24
months.
Longfor's liquidity should support the company's credit standing, despite a moderate
slowdown in rental income growth from its commercial properties, the credit rating agency
said.
Longfor has preserved a high cash balance as of the end of 2019. Excluding undrawn
offshore syndication bank facilities, the company's unrestricted cash of about RMB60
billion is more than sufficient to cover debt maturities--including lease liabilities and
bonds puttable--over the next two years.
Longfor has no offshore maturities until 2022 following two issuances in the past six
months with tenors out to 12 years, one of the longest in the sector. The company's
stronger-than-peers liquidity profile should give it more financial flexibility and time
to cope with the impact of the global COVID-19 outbreak and the related economic headwinds
and volatile capital markets. (KL)