Moody's affirms Evergrande Real Estate

Moody's Investors Service said it affirmed Evergrande Real Estate Group Ltd.'s B1 corporate family and senior unsecured ratings, following news that the company issued an additional $600 million of its five-year senior unsecured 144A regulation S bonds.

The outlook is stable.

The additional bonds will be subject to the same terms and conditions as the $750 million senior unsecured bonds issued in January 2010. The proceeds will be used to fund the company's future expansion, Moody's said.

The ratings continue to reflect Evergrande's position as one of the largest developers in China, as measured by contracted sales, the size of its land bank and its portfolio's good geographical diversification, Moody's said.

The ratings also take into account the company's high exposure to development and execution risks, an unproven track record for its escalating operations and debt-funded expansion strategies, the agency said.

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