Fitch gives Yuzhou notes BB-

Fitch Ratings said it assigned Yuzhou Properties Co. Ltd.’s proposed dollar-denominated senior notes a BB- rating.

The notes are rated at the same level as Yuzhou’s senior unsecured rating because they constitute its direct and senior unsecured obligations. Yuzhou plans to use the proceeds to primarily refinance debt.

Yuzhou’s ratings are supported by a higher contracted sales scale and healthy profitability, with an EBITDA margin of above 25%. “Its quality, low-cost land bank should continue to support a wider margin than those of peers. The company’s sales expansion and relatively short land-bank life of about three years, however, will limit room for deleveraging,” Fitch said in a press release.

© 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.