Fitch Ratings has maintained Sun Hung Kai Properties' (HKG:0016) A long- and F1 short-term issuer default rating, with the outlook at stable, according to a Monday release.

The ratings reflect the company's significant, high-quality Hong Kong investment property (IP) portfolio that supports steady recurring income, Fitch said.

Meanwhile, additional contributions from the IP pipeline boost the company's resilience and partly mitigate weakness in the office segment, the rating agency said.

The company should further display a solid financial profile, anchored by frugal financial management, Fitch said.

The company's recurring EBITDA interest coverage should rise to about 6x in fiscal years 2026 to 2027, given lower gross debt and funding costs, according to Fitch.

The company's leverage should also remain robust at between 20% and 25%, with land acquisitions and capital expenditures to remain controlled.

A sustained decline in the recurring EBITDA interest coverage below 4x or a sustained net debt-to-IP assets ratio of above 30% could lea to a negative rating action, Fitch said.