Moody's: Confirms China's Overseas Development "Baa2" Issuer Rating, Outlook Adjusted from "Stable" to "Negative"

**Insight Network: **On April 2, Moody’s confirmed the “Baa2” issuer rating of China Overseas Land & Investment Limited (China Overseas Land & Investment Limited, abbreviated as “China Overseas Land & Investment”) and the following ratings for its wholly owned financing platform:

The “(P)Baa2 ” for the Medium-Term Note Program of China Overseas Finance (Cayman) VIII Limited has support for the senior unsecured rating. The above program is guaranteed by China Overseas Land & Investment; and

The “Baa2” supporting the senior unsecured rating for bonds issued by China Overseas Finance (Cayman) III Limited, China Overseas Finance (Cayman) V Limited, China Overseas Finance (Cayman) VI Limited, China Overseas Finance (Cayman) VII Limited, and China Overseas Finance (Cayman) VIII Limited. The above bonds are guaranteed by China Overseas Land & Investment;

Meanwhile, Moody’s changed the outlook for all entities from stable to negative.

“This rating confirmation reflects China Overseas Land & Investment’s leading market position in the China residential real estate market, driven by its strong sales contribution from first- and second-tier cities and its strong brand awareness. It also takes into account the company’s excellent liquidity; its sizable cash holdings and strong financing channels supported by its state-owned enterprise background underpin this advantage,” said Ho 卓荣, Moody’s Associate Vice President and Senior Credit Officer.

“The negative outlook reflects China Overseas Land & Investment’s financial performance in 2025 that is weaker than expected, as well as uncertainty around its deleveraging capability. Moody’s expects that, in an environment of continued weakness in the real estate market, the company’s contracted sales and profit margins will remain under pressure,” Ho added.