Core Viewpoint - Moody's has confirmed Longfor Group's corporate family rating at Ba3, reflecting stable operating income, strong brand reputation in high-tier cities, quality land reserves, and sound financial management [1][2] Group 1: Rating and Financial Health - Moody's indicates that Longfor's liquidity remains strong, with non-restricted cash and operating cash flow sufficient to cover unpaid land payments, dividends, and maturing debt over the next 12-18 months [1] - The agency expects credit metrics to recover in the next 12-24 months due to growth in high-margin operating income and ongoing debt reduction [1] - The rating methodology has shifted from residential construction and real estate development to REITs and other commercial real estate, acknowledging Longfor's business model transformation and solid financial standing [1] Group 2: Business Growth and Revenue - Longfor's operational and service business revenue is projected to grow to RMB 13.27 billion in the first half of 2025, accounting for 22.6% of total revenue, with operational revenue at RMB 7.01 billion and service revenue at RMB 6.26 billion [1] - Moody's forecasts that rental income from Longfor's operational business will continue to grow at an annual rate of approximately 5%-7%, reaching RMB 15-16 billion in the next 1-2 years [2] - Service revenue is expected to grow steadily at around 5% annually due to the expansion of managed area and optimization of services provided to clients [2] - Longfor is recognized as an early mover in diversifying into operational and service sectors beyond real estate development, securing stable cash flow and income during the economic transition [2]