(Yicai Global) Feb. 19 -- Landsea Green Properties has refuted US credit rating agency Fitch Ratings's claim that the Chinese real estate firm is facing high refinancing risks amid the new coronavirus epidemic.
The outbreak has a limited impact on Landsea that is running in an orderly manner with sufficient working capital for this year, the Nanjing-headquartered company said in a statement yesterday. The firm predicts its debt-to-asset ratio to have been less than 50 percent by the end of last year, which is low in the sector, it added.
Besides Landsea, six Chinese companies bear high debt refinancing risks, Caixin reported, citing the New York-headquartered agency's report published on Feb. 16. The reason is partly explained by the Covid-19 outbreak that has claimed over 2,000 lives in China and caused wide financial damage across different sectors.
China's small and medium-sized property firms will be more severely affected by the epidemic than big ones amid tighter financing channels and temporary sales office closures, according to Fitch Ratings.
By the end of last year, Landsea had around CNY2.4 billion (USD343.4 million) in debts maturing within one year and its cash reserves amounted to about CNY4.8 billion. The company issued USD200 million in overseas bonds last month to replace a similar sum due in April.
Landsea's stock price [HK: 0106] climbed 1.33 percent to HK 76 cents (US 10 cents) today.
Editor: Emmi Laine