Moody's rates Road King notes Ba3

Moody's Investors Services said it assigned a Ba3 senior unsecured debt rating to the proposed senior unsecured dollar-denominated notes to be issued by RKPF Overseas 2019 (A) Ltd. and guaranteed by Road King Infrastructure Ltd.

The outlook is stable.

The proceeds will be used to refinance the company's existing indebtedness and for general working purposes, Moody's said.

The proposed bond issuance will support Road King's liquidity profile and will not materially affect its credit metrics because the company will use the proceeds mainly to refinance existing debt, the agency said.

Road King's leverage will trend toward 75% to 80% over the next 12- to 18-months from about 60% for year-end 2018, Moody's noted.

The company's corporate family rating of Ba3 reflects its track record in property development and its cautious approach to land acquisitions and financial management, the agency said.

As a result, the company has maintained adequate liquidity throughout business cycles, Moody's said.

The ratings are constrained by the geographic concentration of the company's land bank, as well as the execution risk associated with any new toll road acquisition, 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.