Fitch provides B to Yida China, notes

Fitch Ratings said it assigned Yida China Holdings Ltd. a long-term issuer default rating of B.

The outlook is positive.

The agency also assigned Yida a foreign-currency senior unsecured rating of B with a recovery rating of RR4.

At the same time, Fitch assigned Yida's proposed dollar-denominated senior notes a B(EXP) expected rating with a recovery rating of RR4. The notes are rated at the same level as Yida's senior unsecured rating because they constitute its direct and senior unsecured obligations.

The company intends to use the net proceeds to fund new property projects and for working capital purposes.

Fitch said the ratings are constrained by Yida's high leverage, as measured by net debt/adjusted inventory, the still-small contribution from operations outside the city of Dalian in China's Liaoning province and limited scale. The ratings are supported by its strong record in business park operation in Dalian and expanding presence in other Chinese cities, the agency added.

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