Fitch Ratings lowered Longfor Group Holdings' (HKG:0960) long-term foreign currency issuer default rating, senior unsecured rating and outstanding senior note ratings to BB from BB+, according to a Wednesday release.
The downgrade was due to the China-based homebuilder's narrower liquidity amid a decline in sales and cash flow generation, Fitch said.
The rating agency still sees the company's liquidity as adequate, with free cash flow estimated to hit positive in H2 and 2025.
The outlook is negative, reflecting the likelihood of a longer stabilization period for sales even with new assistive government policies.
The company's ratings still benefit from solid investment property-backed bank funding access and increasing recurring income, Fitch said.
Lower contracted sales or free cash flow generation, an erosion in the investment property segment's operations, and restricted liquidity or funding access could lead to negative rating actions in the future, Fitch said.
Price (HKD): $12.26, Change: $-0.46, Percent Change: -3.62%
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。