Moody's rates Yuzhou Properties notes B1

Moody's Investors Service said it assigned a B1 rating to Yuzhou Properties Co. Ltd.'s proposed senior unsecured dollar-denominated notes.

The outlook is stable.

Yuzhou plans to use the proceeds from the proposed notes mainly to refinance its existing indebtedness.

The proposed bond issuance will support Yuzhou's liquidity profile and will not materially affect its credit metrics because the company will use the proceeds mainly to refinance existing debt, Moody's said in a press release.

The agency said it forecasts that Yuzhou's leverage will gradually recover to 63% to 68% during 2019 to 2020, from about 50% for year-end 2018, driven by likely stronger revenue and controlled debt growth in 2019 and 2020.

The company has a good track record of high profit margins, Moody's said.

The ratings are constrained by the company's high debt leverage, the agency noted.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.