S&P adjusts China Jinmao's rating outlook to "negative," facing more challenges in deleveraging

S&P Global has adjusted the rating outlook for China Jinmao (00817.HK) from "Stable" to "Negative," reflecting that the leverage ratio remains high, and the deleveraging process over the next 12 to 24 months may be slower than expected. At the same time, it has confirmed its long-term issuer credit rating of "BBB-."

The agency believes that the sluggishness of the mainland real estate market may limit China Jinmao's ability to improve sales turnover rates and profitability over the next 12 to 24 months, posing more challenges to its deleveraging process. However, shifting its focus to first-tier cities will help consolidate its market position. Additionally, support from its parent company Sinochem Holdings Corporation will mitigate the risks associated with its high debt ratio to some extent