Moody's confirms Longfor Group's latest rating, outlook "stable"

On April 15th, international rating agency Moody's released their latest rating report on LONGFOR GROUP (00960), confirming the company's rating as B1 with a "stable" outlook. Moody's stated, "The stable outlook reflects our expectation that the company will continue to transition towards a business model focused on recurring income, steadily expanding its operational and service business scale, maintaining positive operating cash flow, and good liquidity." As disclosed, as of the end of 2025, Longfor's operating cash flow, excluding capital expenditures, has been positive for three consecutive years, with a net inflow of 5.8 billion yuan in 2025. As of the end of 2025, LONGFOR GROUP's interest-bearing debt was 152.8 billion yuan, a decrease of 23.5 billion yuan compared to the end of 2024, a decrease of 13%. With the increase in operating property loans and positive operating cash flow, Longfor has safely passed the peak of its debt. Moody's affirmed LONGFOR GROUP's stable income from commercial operations and property services, strong brand influence, rigorous financial management, and good liquidity. Moody's mentioned that LONGFOR GROUP has good liquidity, and in the coming years, the company's debt maturity will gradually stabilize. According to Moody's forecast, Longfor will continue to maintain positive operating cash flow and use the funds to gradually reduce debt over the next one to two years. Moody's expects that Longfor's cash on hand, combined with operating cash flow, will be sufficient to cover short-term debt and land payments for the next 12 to 18 months. Earlier, rating agency Standard & Poor's also affirmed LONGFOR GROUP's liquidity in their rating report. Standard & Poor's believes that, benefiting from business diversification, Longfor's non-real estate development business generates stable cash flow, mitigating the risk of the current downturn cycle and supporting Longfor's liquidity. In addition, prudent financial management will continue to support the company's debt repayment ability.