Moody's rates Poly Real Estate notes Baa3

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

The bonds will be guaranteed by Hengli (Hong Kong) Real Estate Ltd., a 100% owned subsidiary of Poly Real Estate Group Co., Ltd., the agency said.

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, Moody's said.

The proceeds will be used to refinance existing indebtedness and for general corporate purposes, the agency said.

The ratings also consider an expectation that Poly Real Estate Finance will complete the note issuance on satisfactory terms and conditions, including proper registrations with China's National Development and Reform Commission, Moody's said.

The new issuance will slightly improve Poly Real Estate's and Hengli's debt maturity profile and will not materially affect the company's financial profile, as part of the proceeds will be used for refinancing, the agency said.

The ratings continue to reflect its standalone credit profile and a three-notch rating uplift based on an expectation that Poly Real Estate will provide financial and operational support to Hengli in times of stress, Moody's said.

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