Fitch Ratings revised the outlook on Sun Hung Kai Properties (HKG:0016) to positive from stable and affirmed its long-term issuer default rating at 'A', according to an Oct. 2 ratings commentary.
The positive outlook reflects Fitch's expectation that rental income will continue to grow as newly completed investment properties ramp up and Hong Kong's office market recovers.
Fitch expects Sun Hung Kai to maintain a conservative capital structure, with recurring EBITDA net leverage falling to 2.8x in fiscal 2026 from 3.9x a year earlier.
The rating agency forecasts rental revenue growth at a low-to-mid single-digit rate through fiscal 2029.