Moody's rates Wuzhou notes B3

Moody's Investors Service said it assigned a first-time B2 corporate family rating to Wuzhou International Holdings Ltd. and a provisional B3 rating to its proposed dollar-denominated senior notes. The outlook is stable.

The proceeds from the proposed notes will be used to fund the company's development of property projects.

The agency said Wuzhou's B2 corporate family rating primarily reflects the company's competitive position in the Wuxi municipality, generally good sales performance and high profitability thanks to its low-cost land, moderate construction costs and adequate liquidity.

However, these strengths are offset by volatility in its main businesses, its short operating history, its small scale and significant execution risks regarding the company's ambitious strategy to expand into areas outside Wuxi, Moody's said.

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