Fitch rates Yuzhou Properties notes BB-

Fitch Ratings said it assigned a long-term foreign-currency issuer default rating of BB- and senior unsecured rating of BB- to Yuzhou Properties Co. Ltd.

The outlook is stable.

The agency also said it assigned BB- ratings to the company’s $250 million 11¾% senior unsecured notes due 2017, $300 million 8¾% senior unsecured notes due 2018, $300 million 8 5/8% senior unsecured notes due 2019 and $250 million 9% senior unsecured notes due 2019.

The ratings are supported by the company’s strong position in core markets, favorable margin compared with that of its peers, healthy liquidity and moderate leverage, Fitch said.

The key uncertainty is the progress of its expansion into new cities, namely Nanjing and Shanghai, which could not only increase its contracted sales and enhance its presence in the Yangtze Delta region, but also lower its margin level and increase leverage, the agency said.

© 2015 Prospect News.
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