Greenland Holding Group Company Limited: Update following rating downgrade to B2; rating under review for further downgrade

Greenland Holding Group Company Limited: Update to credit analysis - Credit Opinion – 2024/04/26 – US$ 250.00 – ...Greenland Holding Group Company Limited's (Greenland Holding) Ca corporate family rating (CFR) reflects the company's weak liquidity with history of payment default, and our expectation of weak recovery prospects for Greenland Holding's bondholders. The company's rating also takes into consideration the company's large operations with geographic and product diversification in China (A1 negative), and weak financial metrics....

Greenland Holding Group Company Limited: Update following downgrade to Ca, outlook remains negative - Credit Opinion – 2023/08/04 – US$ 250.00 – ...We downgraded Greenland Holding Group Company Limited's corporate family rating (CFR) to Ca from Caa1 and senior unsecured rating to C from Caa2. The rating downgrade reflects the company's weak liquidity and our expectation of weak recovery prospects for Greenland Holding's bondholders. The company's also takes into consideration the company's large operations with geographic and product diversification in China (A1 stable), and its weak financial metrics ....

Greenland Holding Group Company Limited: Update to credit analysis - Credit Opinion – 2022/12/20 – US$ 250.00 – ...Greenland Holding Group Company Limited's (Greenland Holding) Caa2 corporate family rating (CFR) reflects the company's weak liquidity over the next 12-18 months, and our expectation that the company will face difficulties in raising new funds from onshore and offshore channels to address its refinancing needs. The Caa2 CFR also incorporates the company's sizable operations, and geographic and product diversification in China (A1 stable)....

Greenland Holding Group Company Limited: Announced shareholder loan raising is credit positive but refinancing risk remains high - Issuer Comment – 2022/08/09 – US$ 200.00 – ...On 7 August, Greenland Holding Group Company Limited (Caa2 negative) announced a proposal to raise a RMB1.5 billion entrusted loan from each of its two major shareholders, Shanghai Urban Construction Investment and Development Corporation and Shanghai Real Estate (Group) Co., Ltd. The shareholder loan, totaling RMB3 billion, will carry a 6% annual interest rate with a two-year tenor. The transaction, if executed as planned, is credit positive to Greenland Holding because it will provide the company with additional cash to address near-term funding needs. The provision of shareholder loans also indicates funding support from Greenland Holding's state-owned enterprise shareholders under difficult operating and funding conditions. Nevertheless, it remains uncertain whether consistent and timely financial support from its shareholders could be offered to Greenland Holding. This is reflected by Greenland Holding's recent offshore bond maturity extension due to lack of sufficient internal resources...

Greenland Holding Group Company Limited: Update to credit analysis - Credit Opinion – 2022/06/15 – US$ 250.00 – ...All ratios are based on adjusted financial data and incorporate our Global Standard Adjustments for Non-Financial Corporations. The forecasts or projections are our opinion and do not represent the views of the issuer. Sources: Moody's Financial Metrics and Moody's Investors Service estimates...

Greenland Holding Group Company Limited: Update following rating downgrade to Ba3 - Credit Opinion – 2021/12/21 – US$ 250.00 – ...On 16 December, we downgraded Greenland Holding Group Company Limited's corporate family rating (CFR) to Ba3 from Ba2. We also changed the outlook to negative from rating on review. Greenland Holding's Ba3 corporate family rating (CFR) reflects the company's large scale; good geographic and product diversification in China; and stable access to certain onshore bank funds, given its close links with the Shanghai government. However, the CFR rating is constrained by the company's modest profitability and credit metrics, high debt leverage, large refinancing needs, and weakened access to onshore and offshore debt capital markets. While the company will continue to reduce leverage over the next 12-18 months, its financial metrics will weaken because of declining property sales amid tough operating and funding conditions. We expect the company's adjusted debt/EBITDA to weaken to around 6x over the next 12-18 months from 4.9x for the 12 months that ended June 2021 and EBIT/interest coverage to...

Greenland Holding Group Company Limited: Update following rating action - Credit Opinion – 2021/10/22 – US$ 250.00 – ...On 18 October, we downgraded Greenland Holding Group Company Limited's corporate family rating (CFR) to Ba2 from Ba1. Meanwhile, we have placed the rating on review for further downgrade. Greenland Holding's Ba2 corporate family rating (CFR), which is on review for downgrade, reflects the company's large scale, and good geographic and product diversification in China; and better access to onshore bank funds than its privately-owned property peers in China, given its linkage with the Shanghai government. However, the CFR is constrained by the company's high exposure to the construction sector, which weighs on the company's overall profitability; and its weakened access to debt capital markets, which makes it difficult to refinance its sizable offshore debt maturities. While the company will continue to reduce leverage over the next 12-18 months, its financial metrics will weaken because China's softening property development and construction markets will likely constrain the company's cash...

Greenland Holding Group Company Limited: Update to credit analysis - Credit Opinion – 2021/10/06 – US$ 250.00 – ...Greenland Holding Group Company Limited's Ba1 corporate family rating (CFR) reflects the company's large scale; good geographic and product diversification in China; and good access to onshore bank funds because of its close links with the Shanghai government. The Ba1 CFR is constrained by the company's increased exposure to the construction sector, which strains the company's overall profitability, its high refinancing needs and weakened access to debt capital market (both onshore and offshore). Nevertheless, we expect it will have sufficient liquidity to address its refinancing needs. While the company will continue to deleverage over the next 12-18 months, its financial metrics will remain moderate because China's softening property development and construction markets will constrain the company's cash flow and EBITDA generation. We expect the company's adjusted debt/capitalization will stay at around 58%-62%, adjusted debt/EBITDA will be 4.7x-4.9x and EBIT/interest coverage will be...

Greenland Holding Group Company Limited: Update following rating affirmation - Credit Opinion – 2020/08/05 – US$ 250.00 – ...Greenland Holding Group Company Limited's (Greenland Holding) Ba1 corporate family rating (CFR) reflects the company's large scale, good geographic and product diversification in China (A1 stable); fast-growing construction business through both acquisitions and organic growth; and good access to funding, given its close link with the Shanghai government. A key constraint on Greenland Holding's rating is its weak profit margins and interest coverage. We expect its EBIT/interest coverage to decline to 2.7x-2.8x over the next 12-18 months from 3.3x in 2019, mainly because of higher interest expenses and weakening margins. Its rating is also constrained by the execution risks associated with fast growth in its construction and other non-property businesses. Greenland Holding's refinancing needs are high over the next 12-18 months. Nonetheless, it has a good access to various funding channels, including banks and capital markets, to support its debt refinancing needs....

Greenland Holding Group Company Limited: Update to credit analysis - Credit Opinion – 2020/06/17 – US$ 250.00 – ...Greenland Holding Group Company Limited's (Greenland Holding) Ba1 corporate family rating (CFR) reflects the company's large scale, nationwide coverage and wide range of products in the property business across different tier cities in China (A1 stable); fast-growing construction business through both acquisitions and organic growth; and good access to funding because of its local state-owned enterprise (SOE) background. A key constraint on Greenland Holding's rating is its weak margins and interest coverage. We expect its EBIT/interest coverage to decline to 2.7x-2.8x over the next 12-18 months from 3.3x in 2019, mainly because of higher interest expenses and weakening margins. Its rating is also constrained by the execution risks associated with fast growth in its construction and other non-property businesses. Greenland's refinancing needs are high over the next 12-18 months. Nonetheless, it has a good history of accessing different funding channels, including banks and capital markets,...