Fitch rates Yuzhou Properties notes BB-

Fitch Ratings said it assigned an expected BB- rating to Yuzhou Properties Co. Ltd.'s proposed dollar senior notes.

The notes are rated at the same level as Yuzhou's senior unsecured rating because they constitute direct and senior unsecured obligations of the company, Fitch said.

The company's management says it plans to use most of the net proceeds from the issue to refinance existing indebtedness, the agency said.

The ratings are supported by its strong contracted sales growth, regional diversification and favorable margin compared with its peers, Fitch said.

Yuzhou's active land acquisition approach will support higher contracted sales in the medium term, though it may have driven leverage up to about 40% by year-end 2017, the agency said.

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