Moody's: Guangzhou R&F unchanged

Moody's Investors Service said Guangzhou R&F Properties Co., Ltd.'s issuance of $600 million notes due 2021 will not immediately affect its Ba3 corporate family rating or the B1 corporate family rating on its wholly owned subsidiary, R&F Properties (HK) Co. Ltd.

The outlook remains negative.

The notes are issued by Easy Tactic Ltd., a wholly owned subsidiary of R&F Properties (HK), Moody's said.

The notes are also guaranteed by R&F Properties (HK) and supported by a keepwell deed and an equity interest purchase undertaking between Guangzhou R&F, R&F Properties (HK) and a trustee, the agency added.

The issuance will moderately improve Guangzhou R&F's liquidity and lengthen its debt maturity profile, Moody's said.

The impact on the company's credit metrics will be limited because the proceeds from the issuance will be used mainly for refinancing of short-term debt, the agency said.

The ratings reflect the company's sizable scale and track record of operating through the economic cycles, along with robust sales performance and growing income from its hotel business, Moody's said.

The ratings are constrained by its high debt leverage, which limits the company's funding flexibility, the agency said.

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