Source: Media Outreach
HONG KONG, CHINA – Media OutReach – 15 May 2019 – Jiayuan International Group Limited (“Jiayuan International” or the “Group”; SEHK stock code: 02768), an established property developer of both large-scale residential and integrated commercial complex projects in China, is pleased to announce that it has been placed on review for the upgrade of the Group’s corporate rating and debt rating by the international credit rating agency Moody’s Investors Service (“Moody’s”), with the ratings expecting to be upgraded in the near term.
Moody’s says the review for upgrade reflects the firm’s expectation that Jiayuan’s liquidity and operating performance will improve because of the issuance of USD notes in May 2019 and the proposed acquisition of assets from the Group’s major shareholder.
Moody’s expects the Group’s balance sheet cash as of December 2018 and its operating cash flow in 2019 will be sufficient to repay its matured debts.
Moody’s also points out that Jiayuan proposed to acquire property projects from Mr. Shum Tin Ching, the chairman and the largest shareholder of the Group, the signed agreement between the Group and Mr. Shum are pending for approval. Upon completion of transaction, the Group’s business footprint and geographic presence will be broadened, which will be positive to the credit rating. In addition, the transaction that will funded through a new equity issuance to Mr. Shum will also strengthen the Group’s equity base and help alleviate its debt leverage.
Mr. Zhangyi, Vice Chairman, President and Executive Director of Jiayuan International said, “The ratings on review for upgrade placed by Moody’s reflects the capital market’s affirmation of the Group’s recent business performance and effort on optimizing its debt structure. Jiayuan International, as a leading civilian-owned enterprise that has access to abundant capital, will continue with its pragmatic approach to business diversification. Looking ahead, Jiayuan International will continue to capitalize on the state policies by acquiring lands or property development projects in the Yangtze River Delta and Guangdong-Hong Kong-Macau Greater Bay Area through tenders by itself or through joint ventures. It will also seek to acquire quality property projects in provincial capitals and economically vibrant cities in mainland China and other countries and regions which are covered by China’s Belt and Road Initiative so as to maximize the shareholder value.”
– Published and distributed with permission of Media-Outreach.com.