S&P rates Fantasia notes B

S&P said it assigned a B long-term issue rating to a proposed issue of dollar-denominated senior unsecured notes by Fantasia Holdings Group Co. Ltd.

The agency also said it assigned a cnBB long-term Greater China regional scale rating to the notes.

The rating is one notch lower than the long-term corporate credit rating on Fantasia to reflect the structural subordination risk, S&P explained.

The proceeds will be used to refinance the company’s existing debt, the agency said.

Fantasia's operating performance is in line with expectations so far this year, S&P said.

The company is expected to continue expanding its asset-light businesses, in line with its strategic transition, the agency said, while maintaining stable growth in property development.

Fantasia's operating scale and high leverage constrain the ratings, S&P added.

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