Fitch rates Country Garden notes BB+

Fitch Ratings said it assigned an expected BB+ rating to Country Garden Holdings Co. Ltd.'s proposed dollar-denominated senior notes.

The notes are rated at the same level as Country Garden's senior unsecured rating because they constitute direct and senior unsecured obligations, Fitch said.

The ratings are supported by cash inflow from annual contracted sales of more than ¥100 billion, along with strong financial flexibility with low interest cost and a record of strong execution, the agency said.

Moving into the higher-tier cities is a positive development in Country Garden's progression toward becoming a nationwide homebuilder, Fitch added.

But this process may take another one- to two-years to reach fruition if the company continues on its current trajectory, the agency said.

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