Yuexiu Property's leverage has further deteriorated due to the company's continued land acquisitions, slow revenue recognition, and low profitability. The deterioration in leverage will likely weaken the group credit profile of Yuexiu Property's parent, Guangzhou Yuexiu Holdings, which also has substantial debt at the headquarter level. We are placing our 'BBB-' long-term corporate credit rating and our 'cnBBB+' long-term Greater China regional scale rating on Yuexiu Property on CreditWatch with negative implications. We aim to resolve the CreditWatch within the next three months once we have more information on the financial position and plans of Guangzhou Yuexiu Holdings. On March 1, 2017, S&P Global Ratings placed its 'BBB-' long-term corporate credit rating and 'cnBBB+' long-term Greater China regional scale rating
