S&P Global Ratings changed the outlook on Seazen Group (HKG:1030) and its subsidiary Seazen Holdings (SHA:601155) to stable from negative, according to a recent release.

The rating agency also maintained the companies' B long-term issuer credit ratings, among other ratings.

The stable outlook considers S&P's belief that the company's steady rental income will mitigate dampened property sales amid lingering weakness in the property market.

S&P expects contracted sales to drop to between 12 billion yuan and 13 billion yuan in 2026 from 19.3 billion yuan last year.

However, rental income should come to between 13.3 billion yuan and 13.8 billion yuan yearly as annual income from shopping malls increases by 2% to 3% from 2026 to 2027, S&P said.

The company will also retain diversified funding access that will help in supporting maturities in the next one to two years, S&P said.

Major developments in the company's liquidity and payments during debt maturities could prompt future rating actions, according to S&P.