[ET Net News Agency, 12 April 2018] S&P Global Ratings raised its long-term issuer
credit rating on Future Land Development Holdings Ltd. (01030) to 'BB' from 'BB-'. The
outlook is stable.
At the same time, the credit rating agency raised its long-term issue rating on the
China-based developer's outstanding senior unsecured notes to 'BB-' from 'B+'. S&P
upgraded Future Land because it expects the company to continue its current strong
expansion momentum and further improve its end-market diversity in the coming 12 months.
The agency also anticipates that Future Land will maintain good profitability in the
next two years due to strong growth in average selling price (ASP) and effective control
over construction costs.
S&P thinks significant scale expansion in 2017, with total sales reaching RMB126 billion
(RMB95 billion attributable sales), has helped Future Land to transition to a large-scale
national developer. It expects the company's sales to continue to grow strongly in 2018 as
it targets annual sales of RMB180 billion. Its sales were nearly RMB38 billion in the
first three months of the year. S&P believes Future Land's annual target is attainable
based on nearly RMB300 billion of sellable resources for the year. (KL)