Fitch: Guangzhou R&F notes BB

Fitch Ratings said it assigned an expected rating of BB to Guangzhou R&F Properties Co., Ltd.'s proposed dollar-denominated senior notes.

The notes are issued by Easy Tactic Ltd., a subsidiary of Guangzhou R&F, the agency said.

The notes are rated at the same level as Guangzhou R&F's senior unsecured rating because they constitute its direct and senior unsecured obligations, Fitch noted.

The ratings are supported by Guangzhou R&F's land bank scale and contracted sales with margins that are comparable to BB+ peers, the agency said.

The company also has the highest EBITDA margin among peers in this category, Fitch said.

Its recurring income-to-interest expense at 0.16x also supports its rating, the agency said.

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