Moody's rates Fantasia notes B3

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

The proceeds will be used to refinance its existing indebtedness.

The proposed notes will not have an immediate impact on Fantasia's credit metrics because the proceeds will mainly be used for refinancing, the agency said.

The proposed issuance will lengthen the company's debt maturity profile, Moody's said.

The ratings reflect the company's track record in property development in the Chengdu-Chongqing Economic Zone and the Pearl River Delta, the agency said, and the stable recurring income from its property management, rental and hotel management business.

The ratings are constrained by its small scale and high geographic concentration, which will result in a higher volatility in its performance, Moody's said.

The negative outlook reflects concerns that Fantasia's refinancing risk will remain elevated in 2019, against the backdrop of higher financing costs onshore and offshore, the agency said.

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