On November 17, international rating agency S&P Global released its latest report on Longfor Group, affirming the company's BB- rating with a "stable" outlook. The stable outlook reflects S&P's expectation that Longfor's commercial property portfolio will provide sufficient liquidity buffers over the next 12 months.
S&P noted that Longfor's robust liquidity and well-managed debt structure mitigate near-term risks. Data shows that Longfor has fully repaid all onshore bonds maturing in 2025, while its remaining offshore bank loans due within the year amount to approximately RMB 2 billion, according to S&P estimates. More importantly, the company's debt maturities for 2026 and 2027 are significantly lower than those in 2025.
Supported by its commercial property loans, S&P believes Longfor's debt repayment and refinancing risks remain manageable in the short term. Additionally, the agency expects Longfor's commercial property portfolio to demonstrate steady performance, improving liquidity and securing funding.
In the first half of 2025, Longfor's rental income grew 4.9% year-on-year, driven by a high occupancy rate of 97%. Retail sales and daily foot traffic during the same period increased by 17% and 11%, respectively. S&P views Longfor as capable of maintaining stable operational performance in its commercial properties to ensure asset quality and debt repayment capacity.
Earlier, Moody's also stated in a report that Longfor's liquidity position remains strong, with unrestricted cash and operating cash flow expected to cover unpaid land costs, dividends, and maturing debt over the next 12-18 months. Thanks to high-margin operating income growth and continued debt reduction, Longfor's credit metrics are projected to recover within the next 12-24 months.
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