Moody's rates Zhong An B1, bond B2

Moody's Investors Service said it assigned a first-time B1 corporate family rating to Zhong An Real Estate Ltd., along with a provisional B2 rating to the company's proposed renminbi-denominated, dollar-denominated senior unsecured bond issue.

The outlook is stable.

The proceeds will be used to fund Zhong An's land acquisitions and working capital requirements, Moody's said.

The ratings reflect the company's small-scale operations and material geographic and cash flow concentrations in comparison to other rated Chinese developers, Moody's said.

The agency said it expects its sales will be more volatile due to the company's heavy reliance on a few key projects.

But the development of commercial properties will partly mitigate the performance volatility stemming from the negative impact of regulatory measures on the residential sector, Moody's added.

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