Bulletin: Yuexiu Property Co. Ltd. Ratings Unaffected Despite Negative Impact Of Senior Resignations

HONG KONG (Standard&Poor's) Nov. 11, 2015--Standard&Poor's Ratings Services said today that the resignation of two veteran executives at Yuexiu Property Co. Ltd. (BBB-/Stable/--; cnA-/--) is credit negative because of short-term risks to the company's stability and leadership capability. In our view, the new management team may need time to build a track record of execution in a fast-changing industry. Nonetheless, our ratings and outlook on Yuexiu Property are not immediately affected because we expect the company to have sufficient expertise to maintain normal operations. The replacement directors have solid experience either in general management from the parent group or in the property development sector. Further, the parent company, Guangzhou Yuexiu Holdings Co. Ltd. (Yuexiu Group), appears

...HONG KONG (Standard & Poor's) Nov. 11, 2015--Standard & Poor's Ratings Services said today that the resignation of two veteran executives at Yuexiu Property Co. Ltd. (###-/Stable/--; cnA-/--) is credit negative because of short-term risks to the company's stability and leadership capability. In our view, the new management team may need time to build a track record of execution in a fast-changing industry. Nonetheless, our ratings and outlook on Yuexiu Property are not immediately affected because we expect the company to have sufficient expertise to maintain normal operations. The replacement directors have solid experience either in general management from the parent group or in the property development sector. Further, the parent company, Guangzhou Yuexiu Holdings Co. Ltd. (Yuexiu Group), appears keen to strengthen the operations of the Chinese developer. Yuexiu Group is a large state-owned enterprise owned by Guangzhou city government. Yuexiu Property's contracted sales for the first...

Bulletin