Moody's Upgrades Logan Group’s Corporate Family Rating to ‘Ba2’

(China / Hong Kong, February 5, 2021) International credit rating agency Moody's has upgraded the corporate family rating of Logan Group (“Logan”) (3380.HK) to “Ba2” from “Ba3”, with a stable outlook. The upgrade of the rating once again reflects the full recognition of Logan’s healthy capital structure, sound financial indicators and strong performance by international rating agencies.

The rating upgrade is based on Logan’s strong brand influence, product competitiveness, steady sales growth, and track record in maintaining good liquidity. Moody's said in the credit report that Logan’s sizable salable resources and strong sales execution will help the Company further grow its contracted sales with a good cash collection rate in 2021, as well as fund the Company's business expansion. Moody's further pointed out that Logan demonstrated prudent financial management and its financial leverage level continued to improve. It is expected that as revenue continues to grow, the level of financial leverage will be further improved.

Moody's added it is optimistic about Logan’s strong revenue growth and positive financial performance, which will aid the continuous improvement of credit conditions. In 2020, Logan achieved contract sales attributable to shareholders of RMB120.69 billion, a year-on-year increase of 32%, exceeding the full-year target of RMB110 billion. Furthermore, the Company recently successfully issued US$300 million in 7-year senior notes with an annual coupon rate of 4.5%, setting a record for the Company’s offshore bonds with the longest maturity and lowest interest rate.

Amid the continuous differentiation of credit ratings in the real estate industry and the downgrades of some real estate companies, Logan’s credit rating has been continuously upgraded by virtue of its city-focused penetration strategy, forward-looking geographic coverage, abundant and high-quality land bank and industry-leading profitability. This shows that the Company's development results are highly regarded by the capital market and the market is confident in Logan’s future development.