Moody's rates Fantasia notes B3

Moody's Investors Service said it assigned a B3 senior unsecured debt rating to the proposed CNH 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, specifically for the ¥1.6 billion offshore notes due in May 2019, Moody's said.

The proposed issuance can address part of Fantasia's refinancing needs, the agency said.

Fantasia's B2 corporate family rating reflects the company's track record in property development in the Chengdu-Chongqing Economic Zone and the Pearl River Delta, along with stable recurring income from its property management, rental and hotel management businesses, Moody's said.

The ratings are constrained by the company's small scale and high geographic concentration, which will result in a higher volatility in its performance and weak financial management, the agency said.

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