Fitch rates China Vanke notes BBB+

Fitch Ratings said it assigned an expected rating of BBB+ to China Vanke Co., Ltd.'s proposed senior unsecured dollar-denominated notes.

The proposed notes are to be issued under the $7 billion medium-term note program by Vanke's subsidiary, Vanke Real Estate (Hong Kong) Co. Ltd.

The proceeds will be mainly used to refinance the offshore indebtedness of the issuer and the group, Fitch said.

Vanke has granted a keepwell deed and a deed of equity interest purchase undertaking to ensure that the issuer, Vanke Real Estate, has sufficient assets and liquidity to meet its obligations under the notes program, the agency noted.

The ratings reflect the company's strong financial profile, even as it is increasing its investments in non-homebuilding businesses and expanding homebuilding sales, Fitch said.

The company has low leverage and strong financial flexibility to counter industry headwinds, the agency said.

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