Moody’s rates Yuexiu Property program Baa3

Moody's Investors Service said it assigned a provisional Baa3 senior unsecured rating to the proposed $3 billion medium-term note program of Westwood Group Holdings Ltd.

The program will be unconditionally and irrevocably guaranteed by Yuexiu Property Co. Ltd. (Baa3 negative).

Moody's also assigned a Baa3 senior unsecured rating to the proposed notes drawdown under the program. Yuexiu Property will use the net proceeds to refinance existing debt and for general corporate purposes.

"The proposed issuance will not materially affect Yuexiu Property's credit metrics, as we expect it will use the proceeds mainly to refinance existing debt," Franco Leung, Moody's senior vice president and lead analyst for Yuexiu Property, said in a news release.

The agency added that it expects that Yuexiu Property's debt leverage – as measured by adjusted debt to total capitalization and including adjustments for Yuexiu Real Estate Investment Trust (Baa3 negative) – will stay around 56%-58% over the next 12 to 18 months compared to around 57% at year-end 2017.

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