Moody's rates Fantasia bonds B2

Moody's Investors Service said it assigned a first-time B1 corporate family rating to Fantasia Holdings Group Co., Ltd., along with a provisional B2 rating to its proposed dollar-denominated senior unsecured bond issues, the proceeds of which will be used for land acquisition and working capital requirements.

The outlook is stable.

The ratings reflect its established niche business model, which balances the development of commercial and residential properties and minimizes performance volatility stemming the negative impact of regulatory measures on the residential sector, Moody's said.

These strengths are counterbalanced by the execution risk associated with the company's rapid expansion plans, the agency said, as well as its geographical concentration in Chengdu, which accounts for 60% of land bank.

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