Fitch rates Country Garden notes BBB-

Fitch Ratings said it assigned Country Garden Holdings Co. Ltd.'s (BBB-/stable) RMB 950 million 5.8% senior notes due 2021 a rating of BBB-.

At the same time, the agency assigned the company a BBB- long-term local-currency issuer default rating with a stable outlook.

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

“The ratings are supported by Country Garden's strong business profile and stable financial profile. The company secured sufficient well-diversified land across China to take advantage of the business upcycle during 2017 in lower-tier cities and avoided the 2015-2016 downturn from its rising exposure to higher-tier cities,” Fitch said in a news release.

“Cash flow from operations (CFO) also turned positive after Country Garden successfully rebalanced its land bank to target customers in all tiers of cities across China's major economic regions.”

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