The Group’s Project was limitedly impacted by the pandemic and to date, MCY has sold 96% of the units it expects to sell during this year. Therefore, we are of the opinion that the Issuer’s financial position will improve during FY20 and it will have sufficient resources at its disposal to honour all of its financial obligations. In fact, the Group is forecasting its leverage to fall to 3.6x in FY20 (FY19: 82.9x), with an interest coverage ratio of 6.2x (FY19: 0.4x).

Nonetheless, we are still cognisant of the fact that the Issuer expects to enter in the luxury hospitality industry in the near future. The recovery process for the local luxury hospitality, is still uncertain and highly dependable on developments linked to the pandemic. On this basis we are issuing a Neutral credit opinion on this Issuer.

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