Yanlord may be in focus after S&P upgraded its credit rating

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Shares of Yanlord may be in focus in Thursday’s trade after S&P Global Ratings upgraded the Chinese property developer’s credit rating on Wednesday.

Yanlord submitted the S&P announcement as a filing to SGX after the market close on Wednesday.

“Yanlord’s financial position is improving due to substantial margin growth and prudent expansion strategies,” S&P said, upgrading the long-term corporate credit rating to ‘BB’ from ‘BB-‘.

“The stable outlook reflects our view that Yanlord will continue to be disciplined in its expansion strategies,” S&P said. “We also expect the company to maintain high margins over the next two to three years, due to its niche market position in the high-end segment and increasingly diversified land acquisition strategies.”

S&P said that it expected Yanlord’s earnings before interest, tax, depreciation and amortization (EBITDA) margin to be above 30 percent even as contributions from Shanghai are expected to decline over the next few years.

The stock ended Wednesday at S$1.77.