Fitch Ratings affirmed Yuexiu Property's (HKG:0123) long-term foreign-currency issuer default rating at BBB- and maintained a stable outlook, according to a Monday press release.
The ratings agency also affirmed the company's senior unsecured rating, medium-term note program, and notes issued by Westwood Group at BBB-.
Fitch attributed the affirmation to Yuexiu Property's stable market position, positive operating cash flow, moderate net leverage, and strong access to funding, despite a decline in contracted sales amid China's property market downturn.
The rating incorporates a two-notch uplift from Yuexiu Property's standalone credit profile, reflecting Fitch's view of strong support incentives from parent Guangzhou Yuexiu, which is wholly owned by Guangzhou's state-owned assets regulator.