HONG KONG, March 18, 2019 /PRNewswire/ -- Times China Holdings Limited ("Times China" or the "Company", which together with its subsidiaries are referred to as the "Group", HKSE stock code: 1233) announced that its long-term issuer credit rating was upgraded to "BB-" from "B+" and the long-term issue rating of its outstanding senior unsecured notes to 'B+' from 'B' by S&P Global Ratings ("S&P"), an international credit rating agency, with a stable outlook.
The upgrade reflects S&P's view that Times China's continuing revenue growth and controlled land acquisitions will help it sustain its improved leverage over the next two years. The upgrade also reflects improvements in the Company's business profile, including the accelerated conversion of urban renewal projects. The agency says that the Company's concentration and strong position in the development of the Greater Bay Area would support future growth.
In S&P's view, Times China's conversion of urban renewal projects could strengthen its land bank quality and sales pipeline. Low-cost land from these projects should provide the Company with good land replenishment opportunities and better pricing flexibility, enhancing its margins amid market volatility. The agency estimates the conversion of 1 million-2 million sqm in the next two years, which will either enhance its land bank or boost revenues.
S&P's upgrade of Times China's long-term issuer credit rating and long-term issue rating of its outstanding senior unsecured notes reflects the capital market's recognition of the Group's regional focus strategy, the prospects of its accelerated urban renewal segment and confidence in the Group's well managed credit profile. Looking ahead, the Group will continue to maintain a prudent investment strategy, strengthen cash flow management, adhere to procure sales proactively, and fuel turnover rate of capitals.
About Times China Holdings Limited
Times China Holdings Limited is one of the leading property developers in China, focusing on the development of residential properties which are targeting the first-time home buyers and those who have the upgrader demand for the first time. The Group's shares have been listed on the Main Board of The Stock Exchange of Hong Kong since 11 December 2013. Times China positions itself as a "life stylist", with a vision of introducing modern and artistic lifestyles to increasingly affluent middle- to high-income households with relatively high disposable income and strong purchasing power. As at 31 December 2018, the Group had a total of 99 major projects in various stages of development in major cities of Guangdong Province, including Guangzhou, Foshan, Jiangmen, Dongguan, Huizhou, Zhuhai, Zhongshan, Qingyuan and Zhaoqing, as well as in Changsha, Hunan Province and Chengdu, Sichuan Province.