Fitch gives Modern Land notes B

Fitch Ratings said it assigned Modern Land (China) Co., Ltd.'s (B/stable/RR4) proposed yuan-denominated senior unsecured notes an expected rating of B(EXP) and recovery rating of RR4.

The notes are rated at the same level as Modern Land's senior unsecured rating as they represent direct, unconditional, unsecured and unsubordinated obligations of the company.

Modern Land's limited scale in terms of land bank, contracted sales as well as geographical coverage leaves the company susceptible to greater volatility in earnings. Modern Land's contracted sales of RMB 4.4 billion for 2013 (2012: RMB 2.8 billion) and its current land bank of about 1.8 million square meters (excluding presold properties) as at the end of the first half of 2013 is commensurate with homebuilders rated in the B category, Fitch said.

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