Fitch rates China Aoyuan notes BB-

Fitch Ratings said it assigned an expected BB- rating to China Aoyuan Group Ltd.'s proposed dollar-denominated notes.

The notes are rated at the same level as China Aoyuan's senior unsecured rating because they will constitute its direct and senior unsecured obligations, Fitch said.

The proceeds will be used to refinance offshore debt and for general working capital, the agency said.

Fitch said it believes China Aoyuan can sustain rising sales, albeit at a slower pace, due to its fast-churn strategy and strong execution, supported by adequate sellable resources and increasing geographic diversification.

This is despite uncertainty over housing demand in China's lower-tier cities, the agency added.

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