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 Developments and Holdings Group Co., Ltd., Moody's said.

The proceeds will be used to refinance Poly Developments' and Hengli's existing debt, Moody's said.

The new issuance will lengthen Poly Developments' and Hengli's debt maturity profiles and will not materially affect the two companies' credit metrics because the proceeds will be mainly used for refinancing, the agency said.

The ratings continue to reflect the company's Ba3 standalone credit profile and a three-notch rating uplift based on an expectation that Poly Developments will provide financial support to Hengli in times of stress, Moody's said.

Hengli's standalone credit profile reflects its small scale and an expectation that the company will continue to grow in size over the next two- to three-years, which will enhance its operating and financial profiles, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.