Fitch gives B/RR4 to Oceanwide notes

Fitch Ratings said it assigned Oceanwide Holdings Co. Ltd.'s (B/negative) proposed dollar-denominated senior notes a B(EXP) expected rating and a recovery rating of RR4.

The proposed notes, to be issued by Oceanwide Holdings International 2017 Co., Ltd., Oceanwide's wholly owned subsidiary, and be guaranteed by Oceanwide, are rated at the same level as Oceanwide's senior unsecured rating as they will represent its direct and senior unsecured obligations.

Fitch said the rating is supported by the company’s high-quality landbank, which is sufficient for more than 10 years of development.

The rating is constrained by a 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, the agency noted.

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