Fitch rates Oceanwide notes B

Fitch Ratings said it assigned an expected B rating with recovery rating of RR4 to Oceanwide Holdings Co. Ltd.'s proposed dollar-denominated senior notes.

The proposed notes will be issued by Oceanwide Holdings International 2017 Co., Ltd., Oceanwide's wholly owned subsidiary, and guaranteed by Oceanwide.

The notes are rated at the same level as Oceanwide's senior unsecured rating because the will represent the company's direct and senior unsecured obligations, Fitch said.

The ratings are supported by the company's strong sales growth and good quality land bank, the agency said.

The ratings are constrained by the company's rapid increase in leverage, which is likely to remain high for the next 18 to 24 months as the company ramps up development expenditure to support sales growth and continues to invest in its finance business, Fitch said.

Oceanwide has been aggressively diversifying its business from pure property development to financial institutions since 2014, the agency noted.

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