Fitch rates Country Garden notes BBB-

Fitch Ratings said it assigned an expected BBB- 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 its direct and senior unsecured obligations, Fitch said.

The proposed tap of its existing $550 million 8% senior notes due 2024 will not affect the BBB- rating on the bond, the agency noted.

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

The ratings are supported by the company's strong business profile and healthy financial profile, the agency said.

The company has a well-diversified land bank that allows it to achieve consistent growth in contracted sales while keeping leverage at less than 35%, which is in line with investment-grade peers, Fitch said.

The ratings are constrained by the company's more volatile financial profile because of opportunistic land investment, such as in 2015 and the first half of 2018, the agency said.

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