Fitch affirms Evergrande

Fitch Ratings said it affirmed Evergrande Real Estate Group Ltd.'s long-term foreign-currency issuer default rating at BB, as well as its foreign-currency senior unsecured rating at BB following its proposal to issue an international offering of dollar-denominated settled Chinese yuan senior fixed-rate notes.

The proceeds will be used to repay certain onshore bank borrowings, finance existing and new property projects and for general corporate purposes.

The outlook is stable.

Evergrande's proposed issuance of synthetic yuan-denominated bonds will not change its credit profile, provided the coupon rate is fixed and not materially higher than that anticipated by management, Fitch said.

Evergrande has headroom to incur additional debt under the covenants of its existing 13% senior unsecured notes due 2015, the agency said.

The new bonds will increase Evergrande's liquidity to fund future land bank acquisitions and development spending, Fitch added.

The ratings are supported by the company's sound business model and the agency said it expects Evergrande to maintain prudent financial policies.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.