[ET Net News Agency, 4 September 2020] S&P Global Ratings today revised its outlook on
Shimao Group Holdings Ltd. (00817) to positive from stable. At the same time, the credit
rating agency affirmed its 'BB+' long-term issuer credit rating on the company and its
'BB' long-term issue rating on its senior unsecured notes.
S&P said the financial and operating performance of Shimao has proven resilient beyond
the COVID-19 pandemic. The agency believes the China-based property company can continue
to achieve higher sales growth and more stable margins compared with peers.
It anticipates Shimao's EBITDA growth will outpace debt growth in 2020-2021, as S&P
expects the company to be more prudent in land banking due to its abundant land reserve,
benefiting from its project acquisition strategy and urban redevelopment.
The positive outlook reflects its view that Shimao will be able to sustain its stable
operational performance and moderate investment appetite. It also reflects S&P's view that
the company will deleverage gradually and achieve a credit profile comparable to
higher-rated peers over the next 12 months. (KL)