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., which are guaranteed by Yango Group Co., Ltd.

The outlook is stable.

The proceeds from the proposed notes will be used mainly to refinance existing indebtedness, Moody's said.

The rating reflects 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, the agency said.

The proposed note issuance will not have a material impact on Yango's credit metrics because the proceeds will be mainly used for refinancing, Moody's said.

The proposed issuance also will lengthen the company's debt maturity profile, the agency said.

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 rating is also supported by the company's ability to access the domestic debt market, the agency added.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.