[ET Net News Agency, 13 April 2018] S&P Global Ratings affirmed its 'BBB+' long-term
issuer credit rating on China Overseas Land & Investment Ltd. (COLI)(00688). The outlook
is stable.
At the same time, the credit rating agency affirmed its 'BBB+' long-term issue rating on
the senior unsecured notes the company guarantees. S&P believes COLI will maintain its
market leadership in China, its strong execution capabilities, and high profitability.
These qualities will support strong sales in the next two years.
However, it expects the company's leverage to rise over the period due to rapid
expansion. It believes that COLI continues to command a strong market position,
underpinned by its established brand and good-quality land bank in China's higher-tier
cities.
The company has strengthened its land reserve through a portfolio acquisition from CITIC
Group in 2016, which added 31.5 million square meters of gross floor area (sqm GFA), and
recent active land replenishment. In 2017, COLI increased its land reserves to 63.8
million sqm GFA, from 56.7 million sqm in 2016 and 41.4 million sqm in 2015. (KL)