Moody's rates Yango Justice 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 to refinance existing debt.

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

Yango's B2 corporate family rating reflects 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 are supported by the company's ability to access the domestic debt market, the agency said.

On the other hand, the ratings are constrained by its high leverage due to its sizable land acquisitions to support its rapid growth and expansion into new regions, as well as its weak liquidity, Moody's said.

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