Fitch: Guangzhou R&F unchanged on add-on

Fitch Ratings said Guangzhou R&F Properties Co. Ltd.'s proposed issuance of an additional $100 million on its $500 million 5 7/8% senior notes due 2023 will not affect the BB rating on the bond.

The proposed tap issuance will also be issued by Easy Tactic Ltd., a subsidiary of Guangzhou R&F, which issued the existing notes, the agency said.

The tap issuance will carry the same terms and conditions as the existing notes, Fitch said, and are rated at the same level as Guangzhou R&F's senior unsecured rating because they constitute its direct and senior unsecured obligations of the company.

The agency said it believes its land bank of 49 million square meters is now sufficient for more than six years of sales and, therefore, Guangzhou R&F is likely to slow land acquisition in the second half of 2017.

But the weakened credit metrics have made it more probable that the Rating Watch negative will be resolved with a negative outlook if the BB ratings are affirmed, Fitch added.

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