Moody’s: Fantasia notes B3

Moody's Investors Service said it assigned a B3 senior unsecured debt rating to Fantasia Holdings Group Co., Ltd.'s proposed senior unsecured dollar-denominated notes.

The proceeds will be used mainly to refinance existing indebtedness, Moody’s said.

The issue improves Fantasia's debt-maturity profile, the agency said, as the proceeds will be used to repay existing outstanding dollar-denominated notes.

Moody’s said it does not expect the proposed notes to have any material impact on Fantasia's credit metrics.

The company has expanded its asset-light businesses through acquisitions while it continues with a cautious land-acquisition strategy, the agency said.

The company also has a long track record in Chengdu and Shenzhen, diversified development product line and adequate liquidity, Moody’s added.

The ratings are constrained by execution risks in its new markets, short track record of its asset-light model and weak credit metrics, the agency said.

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