Fitch rates Yuzhou Properties notes BB-

Fitch Ratings said it assigned an expected BB- rating to Yuzhou Properties Co. Ltd.'s proposed dollar-denominated senior unsecured 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 proceeds will be used to refinance the company's existing indebtedness, Fitch said.

The ratings are supported by strong contracted sales growth and regional diversification, the agency said.

The company has a good quality low-cost land bank, which upholds its favorable margin compared with peers, Fitch said.

Yuzhou's active land acquisition will increase contracted sales in the medium term, although it may have driven leverage to higher than 40% by year-end 2018, the agency said.

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