Moody's assigns Zhenro notes B2

Moody's Investors Service said it assigned a B2 rating to Zhenro Properties Group Ltd.'s planned senior unsecured dollar-denominated notes.

The B2 rating is one notch lower than the corporate family rating due to structural subordination risk. This risk reflects that the majority of Zhenro's claims are at its operating subsidiaries and rank above claims at the holding company in a bankruptcy. In addition, the holding company lacks significant mitigating factors for structural subordination, Moody’s explained.

Zhenro plans to use the proceeds mainly to refinance debt.

“The proposed issuance will improve Zhenro's liquidity profile and will not materially affect its credit metrics, because the company will use the proceeds mainly to refinance its existing debt,” Moody’s said in a press release.

The outlook is stable.

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