Moody's rates Vanke Real Estate notes Baa2

Moody's Investors Service said it assigned a Baa2 senior unsecured rating to the proposed dollar-denominated notes to be issued by Vanke Real Estate (Hong Kong) Co. Ltd. under its $7 billion medium-term note program.

The outlook is stable.

The proposed notes will be supported by a deed of equity interest purchase undertaking and a keepwell deed between 100%-owner China Vanke Co., Ltd. and Vanke Real Estate, Moody's said.

The proceeds will be mainly used for refinancing and general corporate purposes, the agency said.

The new issuance will lengthen China Vanke's debt-maturity profile and will not materially affect the company's financial profile because the proceeds will be used partially for the company's refinancing, Moody's said.

The rating on the notes reflects Vanke Real Estate's standalone credit strength and a three-notch rating uplift, reflecting an expectation that China Vanke will provide financial support to Vanke Real Estate in times of stress, the agency said.

The standalone credit profile reflects the mid-sized scale of its operations in Mainland China and its fairly diversified geographic coverage; Moody's 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.