Fitch: Shimao unchanged on tap offering

Fitch Ratings said Shimao Property Holdings Ltd.'s proposed tap of its existing $250 million 6 3/8% senior notes due 2021 will not affect the BBB- rating on the bond.

The proposed tap issuance carries the same terms and conditions as the existing notes, Fitch said, and the notes are rated at the same level as Shimao's senior unsecured rating of BBB- as they constitute the direct and senior unsecured obligations of the company.

Shimao has successfully increased contracted sales while maintaining superior margins from its high quality and well-located land bank, the agency explained.

Shimao has built a diversified pan-China homebuilding business that covers 84 cities, Fitch noted, with a firm foothold in the Yangtze River Delta.

The agency said it expects Shimao's recurring EBITDA-to-gross interest expense ratio will improve to higher than 0.6x by 2020, from 0.5x in 2017, as more of its malls and hotels begin operation.

© 2015 Prospect News.
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