We expect Yuexiu Property Co. Ltd. (YXP) to keep its solid market position in China's top-tier cities and maintain stable and diversified funding sources over the next two years, despite declining profitability and an elevated debt-to-EBITDA ratio amid the industry downturn. We assess the Chinese developer as a highly strategic subsidiary of Guangzhou Yuexiu Holdings Co. Ltd (Yuexiu Group) and view it as highly likely to receive extraordinary support from its parent in almost all circumstances. We assigned our 'BBB-' long-term issuer credit rating to YXP. The stable outlook reflects YXP's status as a highly strategic subsidiary of Yuexiu Group, along with our expectation YXP will maintain its market position over the next one to two years despite challenging industry
