Moody's: Evergrande unchanged

Moody's Investors Service said that Evergrande Real Estate Group Ltd.'s share placement has positive implications for its capital structure and liquidity.

However, this fund raising initiative will not have an immediate impact on the company's B1 corporate family rating, B2 senior unsecured bond ratings or stable outlook.

The share placement is credit positive, Moody's said, and is a prudent move by Evergrande's management to improve its debt leverage and liquidity position.

The company has been growing rapidly over the past few years, supported mainly by debt. The latest share placement will enhance its equity base and balance sheet liquidity, the agency said.

This funding initiative should position it more firmly at the B1 rating level, Moody's added.

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