Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

High Yield Experts

Credit Analyst, Lucror Analytics

Shu Hui Woon

Credit Analyst

Credit

We view Country Garden as "Medium Risk" on the LARA scale. The company's projects are geographically spread across China, albeit concentrated in Tier 3 and 4 cities. Demand in lower-tier cities is weak, amid poor market sentiment and strict COVID-19 related measures. Positively, Country Garden has a broad debt maturity profile and access to onshore markets. Our fundamental Credit Bias on Country Garden is "Negative", given expectations of a significant decline in contracted sales and weakening credit metrics amid challenging market conditions. The company has substantial exposure to low-tier cities with weak economic fundamentals. Recovery in these cities will likely be much slower than in high-tier cities, especially with pandemic-related disruptions that would further dampen market sentiment. That said, we believe Country Garden maintains a good cash collection rate, has an adequate liquidity buffer and enjoys good access to onshore funding. Controversies are "Material", with the escrow account for Country Garden's Fuzhou projects having been frozen by local authorities due to customer complaints about poor quality. The matter has since been resolved, with the freeze being lifted. However, this may raise concerns over the quality of the company's projects. In addition, escrow account freezes may impact Country Garden's liquidity. Hence, we view the ESG Impact on Credit as "Moderately Negative".

  We view Country Garden as "Medium Risk" on the LARA scale. The company's projects are geographically spread across China, albeit concentrated in Tier 3 and 4 cities. Demand in lower-tier cities is weak, amid poor market sentiment and strict COVID-19 related measures. Positively, Country Garden has a broad debt maturity profile and access to onshore markets.   Our fundamental Credit Bias on Country Garden is "Negative", given expectations of a significant decline in contracted sales and weakening credit metrics amid challenging market conditions. The company has substantial exposure to low-tier cities with weak economic fundamentals. Recovery in these cities will likely be much slower than in high-tier cities, especially with pandemic-related disruptions that would further dampen market sentiment. That said, we believe Country Garden maintains a good cash collection rate, has an adequate liquidity buffer and enjoys good access to onshore funding.   Controversies are "Material", with the escrow account for Country Garden's Fuzhou projects having been frozen by local authorities due to customer complaints about poor quality. The matter has since been resolved, with the freeze being lifted. However, this may raise concerns over the quality of the company's projects. In addition, escrow account freezes may impact Country Garden's liquidity. Hence, we view the ESG Impact on Credit as "Moderately Negative".  

Country Garden - Tear Sheet - Lucror Analytics

Country Garden Holdings Co

Country Garden - Tear Sheet - Lucror Analytics