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. (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 between Poly Real Estate and the bond trustee, as well as a keepwell deed between Poly Real Estate, Hengli, Poly Real Estate Finance and the bond trustee.

The proceeds will be used to refinance existing debt.

"The new issuance will slightly improve Poly Real Estate's and Hengli's debt maturity profiles and will not materially affect the two companies' credit profiles, as the proceeds will be mainly used for refinancing," Kaven Tsang, Moody's vice president and senior credit officer, said in a news release.

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