...HONG KONG (S&P Global Ratings) Dec. 21, 2017--S&P Global Ratings today affirmed its '##+' long-term corporate credit rating on Yuexiu Property Co. Ltd. with a stable outlook. We subsequently withdrew the rating at the company's request. The affirmed rating at the time of the withdrawal reflected Yuexiu Property's established market position in Guangzhou, diversified funding resources, financial flexibility brought on by Yuexiu REIT, and strong parental support from Guangzhou Yuexiu Holdings. These strengths are tempered by the company's consistently high leverage resulting from aggressive land acquisitions, low profitability, and slow revenue recognition. We estimate that Yuexiu Property's debt leverage, as measured by a ratio of debt to EBITDA, would improve slightly to 8.5x-9.0x in 2017 and 2018, compared with 9.4x in 2016. At the time of the withdrawal, the stable outlook reflected our view that Yuexiu Property's leverage will remain high over the next one to two years. However, it will...
