S&P upgrades Yanlord Land Group rating

Yanlord Land was given a 'stable' rating.

Credit rater S&P has upgraded Yanlord Land's rating to "stable" from "negative".

S&P said Yanlord would be able to maintain its debt level, and it has a good market standing.

"The stable outlook reflects our view that Yanlord will moderately grow its contracted sales andaccelerate project delivery, whilst better managing its debt-funded land replenishments overthe next 12-24 months," it said in a statement.

Moving forward, it expects Yanlord to slow down its expansion compared to its growth in the past two years.

Yanlord's prospects hinge strongly on its dependence on land replenishment, with S&P flagging aggressive debt-funded land replenishment as a downside risk.

On the other hand, should Yanlord be able to improve its profitability through less expensive means, S&P could upgrade its next rating.

S&P gave Yanlord a business risk ranking of "fair" and a financial risk ranking of "average".