Moody's gives Poly Real Estate bonds Baa3

Moody's Investors Service said it assigned a Baa3 senior unsecured rating to the proposed bonds to be issued by Poly Real Estate Finance Ltd.

The bonds will be guaranteed by Hengli (Hong Kong) Real Estate Ltd. (Baa3 stable), a 100%-owned subsidiary of Poly Real Estate Group Co., Ltd. (Baa2 stable).

In addition to the guarantee from Hengli, the proposed bonds will be supported by a Deed of Equity Interest Purchase Undertaking and a Keepwell Deed between Poly Real Estate, Hengli and the bond trustee.

China Poly Group Corp. (unrated), the ultimate parent and a state-owned enterprise wholly owned by Sasac of the State Council, will also provide support through a Keepwell Deed in favor of Poly Real Estate and Hengli with respect to the proposed issuance.

Proceeds will be used to refinance existing indebtedness, for general corporate purposes, and to fund its interest reserve account.

"The proposed bond issuance will improve both Poly Real Estate and Hengli's liquidity in an environment when the availability of onshore bank fund is becoming less predictable," Moody's vice president and senior analyst Kaven Tsang said in a news release.

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