Fitch gives China Jinmao notes BBB-

Fitch Ratings said it assigned China Jinmao Holdings Group Ltd.’s (BBB-/stable) proposed dollar-denominated senior notes a BBB-(EXP) expected rating.

The notes are issued by Franshion Brilliant Ltd., a subsidiary of China Jinmao, and are rated at the same level as China Jinmao's senior unsecured rating because they constitute its direct and senior unsecured obligations.

Fitch said the ratings are supported by China Jinmao's continued strong property development business, which is driven by its good-quality land bank and strong position in Tier 1 and 2 cities.

The rating is also supported by China Jinmao's stable recurring income and recovery in its primary-land sales. However, its aggressive land banking since mid-2016 may result in leverage sustained at current high levels, although the associated increase in risks may be mitigated by bringing in partners for its new projects and the stronger contracted sales in 2H16, the agency explained.

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