S&P Global Ratings lowered Longfor Group Holdings' (HKG:0960) long-term issuer credit rating to BB from BB+, according to a Wednesday release.
The downgrade reflects the property developer's high leverage amid reduced contracted sales and a narrowing profit margin in its property development business.
S&P expects the company's debt-to-EBITDA ratio to remain around 8x through 2025.
The company maintains controlled cash flow management and access to commercial property-pledged loans, which allows it to refinance its obligations.
The outlook is negative, based on the risk of further sales erosion and worsening leverage amid an ongoing industry downturn.
Further shifts in the company's sales and EBITDA interest coverage could lead to future rating actions, S&P said.
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。