Fitch rates Guangzhou R&F notes BB-

Fitch Ratings said it assigned a BB- rating to Guangzhou R&F Properties Co. Ltd.'s $300 million 9 1/8% senior notes due 2022.

The notes are issued by subsidiary, Easy Tactic Ltd., and are rated at the same level as Guangzhou's senior unsecured rating because of keepwell deeds and guarantees, Fitch said.

The proceeds will be used for debt refinancing and general corporate purposes, the agency said.

The ratings are constrained by the company's high leverage measured by a net debt-to-adjusted inventory of about 60% at year-end June 2018, the agency said.

The negative outlook reflects limited headroom for leverage, which is around the downgrade threshold, Fitch said.

But the agency said the company's geographical diversification is comparable with BB+ and BB rated peers.

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