Moody’s revises China Vanke view to stable

Moody's Investors Service said it revised the outlook on China Vanke Co., Ltd.’s Baa1 issuer rating to stable from negative.

The agency also changed the outlook on the provisional Baa2 backed senior unsecured rating on the medium-term note program of Vanke Real Estate (Hong Kong) Co. Ltd. and the Baa2 senior unsecured rating on the bonds issued by Vanke Real Estate (Hong Kong) and Bestgain Real Estate Ltd. to stable from negative.

At the same time, Moody's affirmed the ratings.

Vanke Real Estate (Hong Kong), a wholly owned subsidiary of China Vanke, guarantees the bonds issued by Bestgain.

In addition, all the medium-term notes and bonds are supported by a Deed of Equity Interest Purchase Undertaking (EIPU) and a Keepwell Deed between China Vanke, Vanke Real Estate (Hong Kong) and the bond trustee.

"The stable outlook reflects our expectation that China Vanke's existing management team, business strategy and financial policy will likely continue in the next 12 to 18 months despite possible changes to the board of directors under the latest shareholder composition," Moody's vice president and senior credit officer Kaven Tsang said in a news release.

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