[ET Net News Agency, 26 July 2019] S&P Global Ratings assigned its 'B' long-term issuer
credit rating to China-based property developer Jiayuan International Group Ltd. (02768).
It said that Jiayuan has a small operating scale and a regional concentration in cities
in Jiangsu province. S&P believes the China-based property developer's adequate offshore
cash balance as of 30 June 2019 should ease the upcoming offshore repayment pressure.
The agency assessed Jiayuan's liquidity as less than adequate. The company's debt
capital structure is weaker than peers', reflected by the shorter weighted debt maturity.
The negative outlook for the next 12 months reflects S&P's view that Jiayuan's tight
liquidity could worsen given its sizable short-term debt obligations and a large offshore
debt maturity wall in the near term. At the same time, the company has a short overall
debt maturity profile. (KL)