Fitch rates Oceanwide notes B

Fitch Ratings said it assigned a final B rating and recovery rating of RR4 to Oceanwide Holdings Co. Ltd.’s $200 million 9 5/8% senior unsecured notes due 2020.

The notes are issued by Oceanwide Holdings International 2015 Co., Ltd., a wholly owned subsidiary of Oceanwide.

The notes, guaranteed by Oceanwide, are rated at the same level as Oceanwide’s senior unsecured rating because they represent direct and senior unsecured obligations of the company, Fitch said.

The proceeds will be used for overseas general corporate purposes, including the development of the First & Mission Project in San Francisco in the United States, the agency said.

The ratings are supported by its strong sales momentum and solid asset value, Fitch said.

The ratings are constrained by the rapid increase in net debt to ¥68 billion in the first quarter of 2016 from ¥35 billion in 2014, the agency said.

The trend is likely to continue in 2016 as the company ramps up development expenditure to support sales growth and continues to invest in its finance business, Fitch said.

© 2015 Prospect News.
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