Yanlord Land Group outlook rated 'stable' by S&P Global Ratings

YANLORD Land Group has been given an outlook rating of "stable", an improvement from "negative", by S&P Global Ratings.

The credit rating agency said: "The stable outlook reflects our view that Yanlord will moderately grow its contracted sales and accelerate project delivery, while better managing its debt-funded land replenishments over the next 12-24 months."

S&P Global Ratings' analytical report was filed to the Singapore Exchange by the mainboard-listed company on Thursday.

It also affirmed the "BB-" long-term issuer credit rating on Yanlord, as well as the "B+" long-term issue rating on the China-based residential property developer's guaranteed senior unsecured notes.

S&P Global Ratings noted that the company's moderate investment and expansion appetite will help it to maintain its debt level and temper the credit impact of its compressed profitability.

Further, it said Yanlord's good market standing, with a focus on the higher-end residential segment in higher-tier cities, will support its operating cash flow.

The counter rose 1.71 per cent to S$1.19 on Thursday, before this report was filed.