© Reuters.
Country Garden Services (CGS), a leading property management firm, has reported increased sales despite facing a downgrade from Fitch Ratings earlier this year. The credit rating agency had lowered CGS’s rating to BB+ and placed it on “rating watch negative” in August, citing liquidity issues at its sister company, Country Garden Holdings. As of the end of June, Country Garden Holdings had accumulated over $15 billion in international debt and failed to make a payment on an offshore bond last month.
In a recent development, Fitch announced Monday that it would withdraw all ratings for CGS by December 12 for “commercial reasons.” This move comes after the firm demonstrated good financial health amid the challenges faced by its sister company. The decision to pull back from rating CGS has drawn attention to the company’s resilience in tough market conditions.
Country Garden Services, which operates independently from its sister company, has managed to maintain its business operations effectively, showcasing robust sales figures that defy the negative outlook implied by the prior downgrades. This performance is particularly noteworthy given the default on an offshore bond payment by Country Garden Holdings, which raised concerns over potential spillover effects within the group.
The withdrawal of CGS ratings by Fitch does not seem to have dampened investor confidence in the property management firm’s ability to sustain its growth trajectory. The company’s ability to navigate through the headwinds associated with its sister company’s debt challenges speaks to its operational strength and strategic financial management.
Investors and market observers will continue to monitor CGS’s performance closely as it progresses toward the year-end without the oversight of a Fitch rating. The firm’s resilience in maintaining sales growth amidst industry challenges remains a focal point for stakeholders looking to gauge the long-term stability and profitability of Country Garden Services.
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