Moody's rates Yango notes B3

Moody's Investors Service said it assigned a B3 senior unsecured rating to the dollar-denominated notes to be issued by Yango Justice International Ltd. and guaranteed by Yango Group Co., Ltd.

The proceeds will be used refinance existing debt.

The ratings reflect an expectation that Yango will complete the note issuance upon satisfactory terms and conditions, including proper registrations with the National Development and Reform Commission and the State Administration of Foreign Exchange in China, Moody's said.

The proposed note issuance will extend Yango's debt maturity profile and will not have a material impact on its credit metrics, as the proceeds will mainly be used to refinance existing debt, the agency said.

The ratings reflect the company's strong sales execution, large scale and good track record in Fujian province and the Yangtze River Delta, Moody's said.

The ratings also consider the company's ability to access the domestic debt market, the agency said.

The ratings are constrained by its weak financial metrics due to its sizable debt-funded land acquisitions to support sales growth, Moody's said, as well as its expansion into new regions.

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