S&P rates Future Land notes B+

Standard & Poor’s said it assigned a B+ long-term issue rating and cnBB long-term Greater China regional scale rating to a proposed issue of dollar-denominated senior unsecured notes by Future Land Development Holdings Ltd.

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

The proceeds will be used to refinance its existing $200 million senior unsecured notes due 2018.

The company also is expected to use its proposed issuance of a domestic corporate bond to refinance existing higher-cost borrowings and improve the company’s overall maturity profile, S&P added.

The ratings reflect the company’s geographic concentration in several cities in eastern China and the execution risk in new markets, the agency said.

The company’s established market position in the Yangtze River Delta, quick asset-churn business model and disciplined financial management temper these weaknesses, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.