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Fitch Upgrades Aoyuan's Credit Rating to “BB” with “Stable” Outlook


  (October 30, 2020 – Hong Kong) China Aoyuan Group Limited (“Aoyuan” or the “Company”, Stock Code: 3883) announces that the Company’s credit rating has been upgraded from “BB-” to “BB” with a “stable” outlook by Fitch Ratings (“Fitch”).


  According to Fitch, the upgrade reflected Aoyuan's track record of maintaining a healthy financial profile, as well as its improved geographic diversification and enlarged operating scale. Aoyuan has been financially disciplined during the expansion, aided by its fast-churn business model. As a result, its proportionate consolidated leverage stayed controlled. Fitch also noted that Aoyuan’s unbooked revenue carried a healthy gross profit margin as of end-June 2020, which would support profitability for the next two years. Fitch expected Aoyuan’s urban redevelopment projects located in higher-tier Chinese cities to bear fruit in 2020-2023, which would improve its land-bank quality, allowing Aoyuan to sustain sales growth and mitigate the impact of city-specific austerity policies.


  Aoyuan management commented, “Following the reaffirmation of Aoyuan’s ‘positive’ rating outlook by S&P and Moody’s in April and May respectively this year, we are delighted that Aoyuan’s credit rating is upgraded to ‘BB’ by Fitch. This once again testifies to the recognition of Aoyuan’s development strategy, profitability and financial management across the capital markets and all sectors. Entering the hundred-billion-yuan sales circle in 2019, Aoyuan has achieved contracted sales of RMB83.36 billion for the first nine months in 2020, maintaining a solid presence among the Top 30 PRC property developers. For year-to-date 2020, Aoyuan has completed financing and refinancing through issuance of offshore senior notes, offshore syndicated loans, as well as onshore corporate bonds, thereby optimizing debt structure and ensuring fund safety. Looking forward, Aoyuan will drive quality and sustainable development while maintaining financial prudence, thus bringing fruitful returns to shareholders and investors.”