International rating agency Fitch on Friday assigned China Fortune Land Development (CFLD) a "BB+" on Long-term Foreign Currency Issuer Default Rating (IDR), betting on its stable outlook.
Fitch also put a "BB+" rating to CFLD (Cayman) Investment Ltd's notes in the analysis published on its official website, saying that "they are unconditionally and irrevocably guaranteed by CFLD."
Fitch, one of the Big Three rating agencies, said CFLD's ratings are supported by its leading position in the industrialization and urbanization of large districts in less-developed counties in key economic regions such as the pan-Beijing region, the Yangtze River Delta, central China, the Sichuan-Chongqing Zone, and the Pearl River Delta, as well as its unique business model that is differentiated from most Chinese homebuilders.
In its latest ratings review on CFLD, Chinese rating agency Dagong maintained the company's rating outlook and bond credit rating as AAA.
According to CFLD's financial report in Q1, the company's operating income reached 9.49 billion yuan (approximately US$ 1.48 billion) from January to March, up by 21.48 percent year-on-year. Net profits attributable to shareholders was 2.29 billion yuan, up by 30.33 percent, reporting on better-than-expected growth against restricted home purchase policies especially in regions near Beijing.
In recent years, CFLD has explored various solutions for building and operating industrial parks based on each city's conditions. Its business model has been scaled up to 80 new industry cities across China and extended to six other countries.