Fitch rates Wuzhou notes B

Fitch Ratings said it assigned a final rating of B to Wuzhou International Holdings Ltd.'s $100 million 13¾% senior unsecured notes due 2018.

The assignment of the final rating follows the receipt of documents conforming to information already received and the final rating is in line with the expected rating assigned Jan. 8, Fitch said.

The notes are issued as a tap to the $100 million 13¾% notes due 2018 issued in September 2013 with the same terms and conditions, the agency said.

The notes are rated at the same level as Wuzhou's senior unsecured rating of B as they represent direct, unconditional, unsecured and unsubordinated obligations of the company, Fitch said.

The rating is constrained by the company's small scale compared with peers, the agency said.

Wuzhou is considered a small property developer in China and faces concentration risk with 55% of its contracted sales in the first half of 2013 derived from Jiangsu province and seven out of 11 of its completed projects in Wuxi, Fitch said.

It remains to be seen whether Wuzhou can successfully transfer its business model from Wuxi to other cities in China, the agency added.

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