RAM Ratings, one of the local top rating agency in Malaysia, has recenly reaffirmed the AA3(s)/Stable rating(investment garde) of Country Garden Real Estate Sdn Bhd (CGRE)’s IMTN Programme of RM1.5 billion in Nominal Value (2015/2035), despite the impact of COVID-19 on property sector and economy. CGRE, whose ultimate shareholder is top Chinese Developer Country Garden Holdings Company Limited(“Country Garden Group”), has been obtaining  this highest rating amongst other developers in Malaysia for consecutive four(4) years since 2017.

While the global is deeply impacted by the ongoing Covid-19 pandemic and increasing in uncertainty of economy, the reaffirmation of AA3(s)/stable outlook by RAM reflects that Country Garden Group maintains a leading position in the property market, a good property sales performance, and solid debt coverage ratios and liquidity position.  Also, it fully indicates the confidence that Malaysian rating agence to both Country Garden Group and Country Garden’s business in Malaysia.

CGRE successfully issued the first sukuk in 2015, which was a first ever Sukuk issued by a Chinese Corporation.  In 2016, it was awarded Triple A Islamic Finance Awards 2016 by The Asset and The League Awards 2016 by RAM.

Since 2013, Malaysia has become one of the strategic overseas investment areas for Country Garden Group. Until today, there are 5 launched projects in Kuala Lumpur and Johor Bahru. Today, the city has developed in full of amenities such as commercial street, two hotels, 47^th floor Landmark Building(office/shopping mall and service apartments mixed development) , water theme park, two 18-holes international golf courses, an American international school, and an Industrial Building System (“IBS”) plant which was awarded as the largest fully automated prefabrication factory in Malaysia Book of Records in 2019. Other projects are Danga Bay and Central Park in Johor Bahru, Diamond City and Lake City in Kuala Lumpur.

Country Garden adheres to the strategy of stable and efficiency operation and expands the company business progressively to achieve the sales performance. During the 2020 interim financial announcement, Country Garden Group achieved attributable contracted sales around CNY266.95 billion, cash collected from attributable contracted sales was approximately CNY250.93 billion, while the cash collection ratio reached 94%. This ratio has remained above 90% for five consecutive years.  Total revenue recorded CNY184.96 billion which stands out among key players of the industry.  Total debt and financing costs continued to fall. As of June 30, 2020, the Company’s total debt with interest decreased to CNY 342.04 billion, down 7.5% compared to the end of 2019. Weighted average borrowing cost shrank to 5.85%, down 49 basis points compared to the end of 2019, reflecting investors’ confidence in the credit standing and solvency of the Company.  Besides, Country Garden has continued to enhance efficiency and cut costs. The company’s marketing and administrative expenses decreased by 27.9% over the prior-year period. 

On 18th September, the top international rating agency Moody's assigned a Baa3 issuer rating to Country Garden Holdings Co. Ltd., upgraded its senior unsecured bond rating to Baa3 from Ba1 and revised the outlook on the group to stable from positive.

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