Yuexiu Property's currently high leverage will likely deteriorate further over the next 12 months due to the company's debt-funded land acquisitions and lower profitability. The deterioration at Yuexiu Property will likely weaken the credit profile of its parent company because Yuexiu Property contributes a significant portion of the parent's revenue. We are uncertain whether the company will implement a deleveraging plan sufficient to initiate a material improvement in leverage. Therefore, we are revising our outlook on Yuexiu Property to negative from stable. At the same time, we are affirming our 'BBB-' long-term corporate credit rating on the China-based property developer. In line with the outlook revision, we are lowering our long-term Greater China regional scale rating on the company to
