Greenland Holding Group Company Limited: Update to key credit factors - Moody's Global Credit Research

Greenland Holding Group Company Limited: Update to key credit factors

Greenland Holding Group Company Limited: Update to key credit factors - Moody's Global Credit Research
Greenland Holding Group Company Limited: Update to key credit factors
Published Feb 06, 2018
8 pages (4576 words) — Published Feb 06, 2018
Price US$ 250.00  |  Buy this Report Now

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Brief Excerpt:

...Greenland Holding Group Company Limited's (Greenland Holding) Ba1 corporate family rating reflects the company's (1) track record of delivering strong growth in its property development business and establishing leading market positions in key markets, and (2) highly diversified geographic coverage in China (A1 stable). The company's rating also takes into account its ability (through diversified property product lines, including various types of residential and commercial properties) to manage market volatility. Another important rating driver is Greenland Holding's strong ability to access funding because of its status as a local state-owned enterprise (SOE). A key constraint on Greenland Holding's rating is its rapid business growth strategy, which has resulted in sizable funding needs and weak credit metrics. In addition, the company's rating is also tempered by its volatile business performance....

  
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Credit Opinion

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Greenland Holding Group Company Limited
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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,...

Greenland Holding Group Company Limited: Update following H1 2019 results - Credit Opinion – 2019/09/20 – US$ 250.00 – ...Greenland Holding Group Company Limited's (Greenland Holding) Ba1 corporate family rating reflects the company's (1) large scale, nationwide coverage and wide range of products in property business in China (A1 stable); (2) fast-growing non-property businesses, which offer some benefits of business diversification; and (3) good access to funding because of its local state-owned enterprise (SOE) background. A key constraint on Greenland Holding's rating is its weak interest coverage. While we expect the company's revenue/adjusted debt to continue to improve to 135%-145% in the next 12-18 months because of solid revenue growth and a slower pace of land acquisitions, the company's interest coverage is likely to remain weak for its Ba1 rating at around 3.1x, because higher interest expenses and weakening margins will offset the revenue growth....

Greenland Holding Group Company Limited: Update following affirmation of Ba1 rating, outlook changed to stable - Credit Opinion – 2018/10/02 – US$ 250.00 – ...Greenland Holding Group Company Limited's (Greenland Holding) Ba1 corporate family rating reflects the company's (1) large scale, nationwide coverage and range of products in China (A1 stable); (2) growing construction business, which reduces cyclicality in property development, (3) good access to funding because of its status as a local state-owned enterprise (SOE). A key constraint on Greenland Holding's rating is its weak interest coverage. However, the company's debt leverage has improved over the last 12 months after its cash collection from contracted sales improved and it slowed down its pace of land acquisitions....

Greenland Holding Group Company Limited: Update to key credit factors - Credit Opinion – 2016/11/29 – US$ 250.00 – ...Greenland Holding Group Company Limited's Ba1 corporate family rating reflects the company's track record of delivering strong growth for its property development business and establishing leading market positions in key markets owing to its highly diversified geographical coverage in China (Aa3 negative). The company's rating also considers its ability ¡ through diversified property product lines, including various types of residential and commercial properties ¡ to manage market volatility. Another important rating driver is Greenland Holding's strong ability to access funding and acquire land due to its status as a local state-owned enterprise (SOE), as well as its strong corporate status in Shanghai, given its important role in the urbanization of the city. A key constraint on Greenland Holding's rating is its debt-funded growth strategy, which has resulted in high debt leverage and weak credit metrics. In addition, its rating is also tempered by its volatile non-property businesses....

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Moody's Global Credit Research—Moody's Investors Service, a leading global credit rating, research and risk analysis firm, publishes credit opinions, research, and ratings on fixed-income securities, issuers of securities and other credit obligations. Credit ratings and research help investors analyze the credit risks associated with fixed-income securities. Ratings also create efficiencies in fixed-income markets and similar obligations, such as insurance and derivatives, by providing reliable, credible, and independent assessments of credit risk. For issuers, Moody's services increase market liquidity and may reduce transaction costs.

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MLA:
Moody's Global Credit Research. "Greenland Holding Group Company Limited: Update to key credit factors" Feb 06, 2018. Alacra Store. Mar 29, 2024. <http://www.alacrastore.com/moodys-credit-research/Greenland-Holding-Group-Company-Limited-Update-to-key-credit-factors-PBC_1108704>
  
APA:
Moody's Global Credit Research. (). Greenland Holding Group Company Limited: Update to key credit factors Feb 06, 2018. New York, NY: Alacra Store. Retrieved Mar 29, 2024 from <http://www.alacrastore.com/moodys-credit-research/Greenland-Holding-Group-Company-Limited-Update-to-key-credit-factors-PBC_1108704>
  
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