Moody's rates Zhenro Properties notes B3

Moody's Investors Service said it assigned a B3 rating to Zhenro Properties Group Ltd.'s proposed senior unsecured dollar-denominated notes.

The outlook is stable.

The proceeds from the proposed notes will be used to refinance existing debt.

The proposed bond issuance will not materially change Zhenro's credit metrics in the next 12- to 18-months, the agency said, and will help address its short-term refinancing needs.

Moody's forecasts that Zhenro's debt leverage will show an improving trend over the next year or more from 53% in 2018 and 44% in 2017, as revenue increases on the back of strong contracted sales.

Zhenro's B2 corporate family rating reflects the company's quality and geographically diversified land reserve, large scale and strong sales execution, the agency said.

The rating is constrained by its weak financial metrics as a result of its debt-funded rapid growth and moderate liquidity position, Moody's said.

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