Fitch rates Oceanwide notes B-

Fitch Ratings said it assigned an expected B- rating with recovery rating of RR4 to Oceanwide Holdings Co. Ltd.'s proposed dollar-denominated senior notes.

The proposed notes will be issued by the company's wholly owned subsidiary, Oceanwide Holdings International Development III Co., Ltd.

They will be guaranteed by the parent company and are rated at the same level as the company's senior unsecured rating as they will represent its direct and senior unsecured obligations, Fitch said.

The ratings are constrained by the company's high leverage, measured by net debt-to-adjusted inventory, including available-for-sale financial assets and financial institution investments, the agency said.

Fitch said it believes it will be sustained at higher than 70% as the small reduction of its net debt in the first eight months of 2018 will not materially reduce its leverage and its sales collection pace continues to be constrained by China's restrictive policies.

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